RussiaGate issue resurfaces! Can the market keep the high level?
Around December 2, 1:00 AM
Hope for passage of the tax reform bill in the U.S. Senate
Dollar-Yen and stock prices were rising steadily and enjoying a comfortable ascent, when that happened.
Flyn acknowledges contact with Russia
Former U.S. National Security Advisor Flynn admits contact with Russia
and then testifies that he was instructed by President Trump
This news was reported as a claim.
Just as I was wondering whether this year would end as is, this crash occurred.
Focus has returned to the tax reform bill, and the rate has temporarily stabilized, but
going forward, this Russia-gate issue is likely to remain a risk factor for the Trump administration.
What is concerning is that, even though positions were heavily skewed,
a single risk-factor news report caused an instant 150 pips drop in USD/JPY and a 400-point drop in the NY Dow.
2017 was a relatively calm year, and there were no such crashes.
What I want to say is that the market environment is changing.
The NY Dow has risen for a year without a correction,
and as is seen in stock prices, prices are rising with low volatility; at high levels volatility suddenly increases, and eventually an abrupt market adjustment, a crash, occurs.
The sudden crash that accompanies this resurfacing of the Russia-gate issue
feels like the NY Dow is entering a phase of expanding volatility.
If the NY Dow ultimately experiences a major crash and large adjustment, the USD/JPY will not escape unharmed.
Domestic institutional investors such as the Bank of Japan, GPIF, and life insurance companies will continue to drive prices down as if to mock us.
If a major crash occurs…?
We traders simply need to limit risk and hold short positions.
That’s all.
Blog here. If you want to know about the essence of the market, please visit
For those who wish to win in FX trading ~The Path to Becoming a Consistent Winner Trader~
Hope for passage of the tax reform bill in the U.S. Senate
Dollar-Yen and stock prices were rising steadily and enjoying a comfortable ascent, when that happened.
Flyn acknowledges contact with Russia
Former U.S. National Security Advisor Flynn admits contact with Russia
and then testifies that he was instructed by President Trump
This news was reported as a claim.
Just as I was wondering whether this year would end as is, this crash occurred.
Focus has returned to the tax reform bill, and the rate has temporarily stabilized, but
going forward, this Russia-gate issue is likely to remain a risk factor for the Trump administration.
What is concerning is that, even though positions were heavily skewed,
a single risk-factor news report caused an instant 150 pips drop in USD/JPY and a 400-point drop in the NY Dow.
2017 was a relatively calm year, and there were no such crashes.
What I want to say is that the market environment is changing.
The NY Dow has risen for a year without a correction,
and as is seen in stock prices, prices are rising with low volatility; at high levels volatility suddenly increases, and eventually an abrupt market adjustment, a crash, occurs.
The sudden crash that accompanies this resurfacing of the Russia-gate issue
feels like the NY Dow is entering a phase of expanding volatility.
If the NY Dow ultimately experiences a major crash and large adjustment, the USD/JPY will not escape unharmed.
Domestic institutional investors such as the Bank of Japan, GPIF, and life insurance companies will continue to drive prices down as if to mock us.
If a major crash occurs…?
We traders simply need to limit risk and hold short positions.
That’s all.
Blog here. If you want to know about the essence of the market, please visit
For those who wish to win in FX trading ~The Path to Becoming a Consistent Winner Trader~
× ![]()
