The Local's Take: Afternoon Commentary

Good Afternoon,
It has been a wild few weeks, but looks like (for now) we have found some support in equities. We do have wild intraday swings which are caused by breaking news stories, announcements, debates, and results. These "unforseen" volatility shakeups can make it quite unnerving to be in a position. So, the answer is money management. If you are right or wrong on a trade, the tradea has the possiblity to go further than normal, so you don't need huge size to have a positive effect on your account (or negative). It is about location, timing and percentages, not dollars. So contract size does not matter, not in these markets as the size of the move matters.
There were numerous trades today in the forex markets. Two to highlight are the BUFFALO BOUNCE in the GBP/USD and the late day DOUBLE FALL LINE TRADE in the AUD/USD:

Past performance is not indicative of future results

Past performance is not indicative of future results
Moving to equities, the USO naked put should work out as we only have 3 more days and if USO dropped from 33.75 to 30.50, I might just take ownership. Given today's first paragraph, since it is a real possibility in these markets, I have raised my stop to lock in profits.


Past performance is not indicative of future results
The SPY is in "no man's land" and hasn't retraced much. Remember, in past posts, I have mentioned that rallies are now to be sold due to a change in technical picture. BUT, you still have to decide on where and when you are going to sell the rally. Will you sell it here, thinking this is a dead cat bounce? Will you sell it higher (if it gets higher?) It all depends on what you are trying to accomplish. If you are a nervous investor, hedge it. If you are a trader, maybe you wait for a higher retracement which makes your put options cheaper.



Past performance is not indicative of future results
Webinar tomorrow evening, here is the link: https://www1.gotomeeting.com/register/764826112
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.
Happy Trading and Be Environmentally Cool
Coach Brian