Looks like intraday volatility has returned! Here is the link to last night's webinar that warned of its return. I will say it right now: if you aren't protecting your long term investments and aren't learning to trade versus invest, you will underperform.
While sitting outside and having a conversation with friends, someone asked how long can this last? I answered: 10 years. Someone else asked when will things get better? I answered: they already did. Don't get me wrong, corportations will make money (albeit lean and mean and knowing they can fire you today and pick up cheaper labor tomorrow) and people still will spend money, but will it be a smaller percentage. If it the unemployment numbers rise significantly, how can "things get better?". Regardless, fixed costs will go up: schools, health care and I haven't even touched on if inflation rears up and commodities get more expensive. Worse yet, and this is the word I use over and over: STAGFLATION - zero growth and zero price pressure so no inflation.
What does that mean for investors - sub par returns. What does that mean for traders? Above average returns!
To the charts. I mentioned you must protect in yesterday's blog and webinar. Here is an updated SPY chart. Big move down, 23.6-38.2 retracement up, followed by big move down.
Past performance is not indicative of future results
Check out the next chart, SBUX. If you didn't protect it here, what were you waiting for, new highs? And who cares if it makes new highs. You still have to protect it. This was a freebie!
Past performance is not indicative of future results
This is similar to a MMM chart just before they had bad earnings where they were giving away puts for a very, very low price and then, woops, things stink!
Moving to forex, it was a 3 for 3 day (although I only got 2 of them as had to take my son to the doctors). The first two are BUFFALO BOUNCES and the third is DOUBLE FALL LINE TRADE.
Past performance is not indicative of future results
Past performance is not indicative of future results
Past performance is not indicative of future results
Weekly wrap up tomorrow as well as intraday comments in Interbank FX's Connect
Happy Trading and Be Environmentally Cool
Coach Brian
Forex 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 los
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