By Chris Becker
There’s good volatility and bad volatility, and it all depends on your timeframe. Day traders have loved the start to the week but for position traders and investors, Trump’s tweets are causing havoc by re-opening the US/China trade war and a possible hot war against Iran. US stocks opened nearly 2% lower while oil markets fell over 3% but most of these losses were filled by the end of the session, as the USD remained relatively calm post the usual (and avoidable!) Monday morning gap. With the return of Japanese traders today, plus the RBA meeting this afternoon, it should be another good/bad volatile session on Asian markets.
Looking at what happened yesterday first, the Shanghai Composite reopened and closed nearly 6% lower to close just above 2900 points, losing almost 200 points while in Hong Kong the Hang Seng Index was down nearly 1000 points or 3%, closing at 29209 points, wiping out all of the last two months gains and well below previous local support at the 29000 point level. Notably there is a lot of buying support here so we could see a clawback:
