A market without conviction.

It is currently another day of uncertainty in the market. Positive data from Australia hasn't helped the AUD. Flat CPI and lower consumer spending from Japan, would have on other day weakened the JPY. But it's currently the strongest currency on the day. The US dollar index is flat. And stocks are falling after yesterday's rise. All in all it appears that everyone is waiting for CPI, or possibly the start of earnings season (which begins on Friday with the big banks reporting).

There are often periods of uncertainty in the market. On this occasion it's easy to see why. We had a long period of 'risk on' before Christmas, thanks to the pricing in of rate cuts early this year. The move was perhaps a little stretched (or overbought if you like). And now a slight re-think on the path of rate cuts has caused position squaring before the next 'catalyst' determines the next bout of direction.

So, unfortunately, it's a case of being patient and waiting for that catalyst to occur. But the days you don't trade are just as important as the days you trade. Ultimately, there are always enough trades thought the year to make a modest amount of money.