I’m constantly taking in as much macroeconomic information as I can because it makes me a better, more informed trader.
It helps me figure out the world and put together this 3D chess puzzle that is the interconnected global stock market.
In order to make sense of how stock markets around the planet interact with each other and how they’re correlated, you need to understand the universal assets that everyone looks at and trades.
First and foremost, the biggest market in the world is foreign currency, also known as FX or forex.
As they say, “cash rules everything around me,” so if you want to learn to trade macro, the first thing you need to understand is the U.S. dollar.
It’s the biggest currency in the world, the reserve currency, and you have to watch it against the euro, the pound and the yen.
Becoming an expert in the dollar is the foundation of all macro trading.
The next thing you need to understand is interest rates and the bond markets, the biggest being here in the U.S., then Europe and Japan. You’ll see there’s a lot of crossover between interest rates and currency.
The third universal thing people look at are commodities… For instance, people trade gold and oil all over the world.
Once you have a strong understanding of these core concepts, then you can have a macro view of the trading world that extends to trading stocks and even crypto.
You really have to nail the dollar first and foremost, and then interest rates.
Once you learn how money moves geographically from market to market, that’s when you’ll begin to understand macro trading, and how to put that knowledge to work for your portfolio.
Jeff Zananiri
Jeff Zananiri Trading
*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk.
P.S. Have You Heard About the ‘Power Hour’?
Lance Ippolito and Chuck Hughes have discovered an incredible breakthrough in the market…
It seems that Wall Street is moving almost all of its biggest transactions to a certain hour of the day…
In nearly 40 years of trading and investing, they have truly seen nothing quite like this.
At the end of the trading day, sneaky Wall Street can pour millions, even billions of dollars into a handful of tickers…
And as a result, some of these tickers have seen massive surges in value in the final 60 minutes of the day.
Lance and Chuck call this time period the “Power Hour,” because that’s when the Wall Street money really comes out to play.
And if you can learn to track these Power Hour Stocks, you could potentially get out ahead of some of the biggest moves in the market.
