My head is spinning, but honestly, I am glad that happened! I don't want us to break and break and break. I want us to hang in there. We have so much more news to digest this week (see yesterday's post), so we aren't out of the woods yet, but the move this afternoon could have shaken some shorts out. If we can rally again tomorrow and get into the 1140 range, things could get iteresting.
They will be interesting nonetheless due to a flurry of data in the next three days, so as mentioned yesterday: let the trade come to you and trade the appropriate size!
To the forex charts. We started off with a DOUBLE FALL LINE TRADE in the GBP/USD, which I didn't take as Bernanke was speaking. As Bernanke spoke and the markets rallied, the dollar weakned and you know that if you are seller of equities, you can also look to buy the dollar as it eweakens and that scenario happened, giving us a BUFFALO BOUNCE in the EUR/USD:

Past performance is not indicative of future results

Past performance is not indicative of future results
Then, the insanity happened. After having a few clients and talking about not buying puts down here, the markets turned. I guess I should have just had the markets do the lesson. Risk to reward folks, risk to rewawrd!! I am exiting puts today, not entering new ones. I guess the retail investor got short today or dumped some of their positions!!
More fun tomorrow!
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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