Key data are on tap this week including the German October ZEW survey along with the UK’s labour market report, consumer prices and retail sales. But focus will be on the latest data deluge from China for the month of September and for the third quarter as well. Both the Bank of England and the Reserve Bank of Australia will release minutes of their respective October meetings. The minutes from the BoE will provide some sense from the policy debate earlier this month on how likely the MPC is to expand its asset purchase program at its next scheduled meeting on November 8th. From the RBA, analysts will be looking for more information on why the Bank cut its policy rate a month sooner than was generally expected and will be looking for clues on whether there will be another quarter point cut before yearend.
We are traders and masters of risk. When you become pro you stop over analysing and all you do is sit there, and wait, and wait, and wait some more until you find the perfect trade. What I am saying is that the market makes all the decisions. Our only decision is to listen, feel, and respond to the market’s siren. Always and without exception. Remember, the market never lies. It is only we who lie to ourselves.
