The awe-inspiring volcano eruption in Chile is a reminder of a valuable trading lesson.
The internet is inundated with incredible pictures of the Calbuco volcano. The eruption was so powerful that the plume created its own weather system and put on a remarkable show last night.
Coke is even sponsoring natural disasters now
Volcano sunset
Second eruption
Hard to believe it's even real
The Calbuco volcano erupted after a half-century of dormancy. That's how it is with markets.
The ones that are the quietest for the longest result in the most fireworks. Earlier this year it was EUR/CHF moving 3000 pips after years of quiet.
USD/JPY is a classic example. Many times over the past decade it has gone silent only to later erupt when no one was watching. For the past six months -- a timeline that feels like decades in markets -- the pair has been consolidating in a narrowing range below 122.
There's not sign of an eruption just yet, but when the top or the bottom blows, it will spectacular.
Masterful artwork
Update: This chart eventually erupted in a quick rise to 1.26
