The last trade of the day yesterday was a loser. After reaching my daily goal, I cut my size and still ended up with a nice day. Shutting down with a loser doesn't feel good, but it wasn't about the loss, it was about sticking to my plan and trading with discipline. I would take the trade again as it was the proper thing to do.
Even better though, after walking away and looking at charts later that evening, I LEARNED something! Let's take a look at the GBP/USD:
The Fibonacci retracement shows us retracing over 76.4% of yesterday's downmove (my loser took place in this area). With that deep of a retracement, there is a good sign we will continue in that direction and alas, last nights Asian and European session continued to drive the GBP lower against the dollar.
This is a classic V formation (or upside down V). Retracements of the entire move lead to contination in the direction of the retracement.
Taking a look at the equity marktes and the rest of the forex markets finds us in very tight ranges. Not much on the data front today either, so unless we start to move, it could be a day to do some research, read a trading journal, or work on different trading strategies in your mini or paper account, or stare at the weather report.
Looks like a minor storm is rolling through with snow expected today and tomorrow, but nothing of "dumpzilla" proportions. If you are going to go skiing, step into some Rossi TI Classic 80's - titanium rippers and go ski Deer Valley - the Jordanelle area in the morning is reaching epic groomer status!
If you are in the Park City area, the PC Trading and Investing Club (PC TIC) is holding its post New Year's gathering at the Sidecar. We will toast last year's gains and get ready for volatility in 2010 (hopefully!!).
Overall it looks like the dollar has a bit of a bid to it with obviously the GBP beaing the weakest after the walloping the doallar took yesterday.
Stay tuned for intraday updates as (if) they happen.
Happy Trading and Be Environmentally Cool with Locals Have More Fun Apparel,
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