From the sky is falling to everything is fine. We are bouncing back and forth in one big range in the broad markets, support is holding in most stocks and sectors and the dollar is all over the place. Makes for very, very astute trading and knowing when not to trade is just as important.
So money management, trade risk and realistic expectations with an emotional attatchment are key.
Rubber band action in the SPY (otherwise known as support and resistance):
Past performance is not indicative of future results
For all of you that thought GLD was going through, yesterday was clearly a sign that 1900 is providing resistance as we trade up there, but then sold off heavily as equities held in and then with the continuation of the equity rally today, GLD had no reason to stay bid:
Past performance is not indicative of future results
Remember, with news happening almost every night and markets gapping up or down on a daily basis (and doing it in triple digit moves), there is opportunity to protect your positions, whether they are GLD or equities.
Moving to forex, I mentioned that the dollar is all over the place. It is weak agains the AUD and the NZD, but strong against all other pairs today. What does that mean when the GBP and EUR can't get off yesterday's lows. The last time we had equities rally hard and the dollar stay strong, equities got punished the very next day. (They were up at the 123 level). Maybe we need to get to the top of the rangebound area we are playing in before sellers come back in. Maybe the GBP and EUR need another day of convining by the equity rally to begin their push off of support.
Past performance is not indicative of future results
Past performance is not indicative of future results
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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 lose.
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