Genesis Asset Clients' Update - December
Through the last 60 days (since Oct 1st), New Zealand dollar (NZD) has been outperforming all other major currencies hands down. The Aussie, is also showing significant strength and it is the next top performer behind Nzd. However, we don't hear much about them in the news and there could be a reason behind it. Nonetheless, we have quietly benefited from their hidden strength.
Currency Strength table
November's gain has been modest +2.77℅ but we have come back significantly.
From now, my key focus is to drive the account to newer highs.
While the last 2 weeks' action has been in a mildly sideways direction, I am still expecting the Aussie pairs to come back alive and make new highs along side with the Kiwi.
AUD/JPY Daily Chart (published Nov 17):
83.50 on sight. If we get daily candle closing above 84.0, then next stop would be at 84.50.
AUD/USD Daily Chart:
0.74 is the immediate target
Our long positions on Euro and Pound may appear counter intuitive but it is a relatively low risk entry based on my projection. I will just add some more whenever they get beaten down. While the downside move can be limited, we can expect bigger move to the upside to surprise short traders.
EUR/USD Daily Chart:
If euro breaks below 1.126, expect some more downside and this will give me opportunity to add some more. Else, this could bounce up to 1.18
Cadjpy trade which is an oil play, that has been lagging behind but poses no threat. I would like to see it coming to 86.5 to tell me it is ready to eye 91.0 in near term.
Our 2018 YTD performance has yielded slightly above 70% and is fairing pretty well compared to major stock indices across the globe.
GAM is resilient. I strive for continuous improvement which has been my mantra adopted from my former career as a lead design engineer. The recent setback has somehow created new opportunities and improvements to my long running strategy's rules. I have incorporated these changes, albeit small, but can produce greater results and especially, react better if the price is moving against us. I have completed proper backtesting with the new updates and the new results are looking good.
The strategy is running at full throttle and I am confident to see superior returns on our investment particularly through 2019.
About the Author
Ramesh is an active trader producing over 200% gain in 2017 and author of 3 trade strategy development books sold on Amazon. He is the creator the 10/20/30 Rule™ that could transform a mediocre trading system to become a top performer by following a systematic and thoughtful approach on strategy development.
Books By Ramesh Selvarajoo