That was a fun day!
Volatility crept back in as we saw equities tank. I think this is a "makeup". I am still sticking with unemployment data and the fact that is was HORRIFIC should, in reality, make us go down. It should make us go down a lot more than the 69 points from Friday and the 150 from today.
It's as simple as that. Forget Europe, our debt ceiling, etc..., it is all about jobs. I understand that you can't make money from bonds. I understand corporate profits are good and will continue to be good (not forever, but for the next quarter or two) and I understand that equities are the place to be. BUT, how long can corporate profits stay "insane" if unemployment goes up. Corporations know they can get more for less out of their workers (i.e, productivity). So unemployment climbs and corportate profits climb and equity prices climb. Climb a wall or worry and long-term unhealthy issues. That is why I will always play defense on my portfolio, but absolutely, location, location, location.
To the forex charts. The day started with a BUFFALO BOUNCE in the EUR/USD as it got walloped:
Past performance is not indicative of future results
Even though there wasn't a trade, the GBP/USD broke through support - will old support become new resistance? Maybe a multi-day swing trade is setting up:
And finally, the AUD/USD - DOUBLE FALL LINE TRADES both ways - as equities rallied and fell off and then towards the end of the day when equities hung in there:
Past performance is not indicative of future results
Moving to equities, I could use a little more of a selloff in the Nasdaq as the weak dog turned out to be the strongest during the recent rally up. If it could retrace to the 38.2 percentage area I would be quite happy!
Past performance is not indicative of future results
Looks like both of the USO trades will finish out productively as the 35 cash secured put and the 40/41 bear calls look safe. It's all about the rubber band stretching too far (and too fast).
Past performance is not indicative of future results
Happy Trading and Be Environmentally Cool
Coach Brian
Online currency trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose
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