Short EUR, Aud, GBP, Nzd from about a half hour ago. Just saw the reversal and jumped on it. Then i saw that the markets were down along with DB. Going to try to hold these shorts. I smell blood in the water.
Usd/Cad appears to have finally broken out above 1.32. AUD and NZD have charts which look to me like they could roll over at any minute. Trying to keep an open mind as usual, but in the back of my mind I know that sooner or later things must change. These trading ranges will eventually be broken.
I like it but there seems to be a flaw somewhere and I can't put my finger on it. I think it was mentioned in the article --etfs don't add liquidity. I don't know if that's true or not. Every system has a vulnerability. And they have created their own very large system.
Yes it did bring volatility. Check out DB chart. Hanging by a thread. Euro got pounded pretty good today as well as British Pound even more. If DB goes I would bet on more volatility for sure. When I traded equities I was always aware of the moon.
Chop, chop, chop. Then reversal. Not a lot of fun to trade. Only bright spot was Cad short. Keep seeing currencies about to break hard to the downside, and the selling evaporates. Not sure what to make of it.
I'm Short everything against the dollar from this evening. Too much turmoil going on with the bond market. I sense a flight to quality. Euro again the strongest in this situation, so I'm looking to get out of that first.
Thank you, vanzandt, for your post. It's the best thing I've read for quite awhile. Reminds me of the "Free money" that Mark Douglas talked about in his first book. And the joke about rehab--"Rehab is where you spend 20 thousand dollars to find out that AA meetings are free."
The whole idea of trying to cure something or fix something by doing meditation is not meditation. The idea is to try to turn off monkey mind for a brief period of time. The mind loves problems, because without them it ceases to exist. And that is the central problem, not the things that your...
Obviously if we get strong buying right off the bat, I'm going to have to change my thinking. Then I'll be looking for support in a theoretical uptrend. Where? At previous high volume levels. A strong push up that fails miserably would be even better.
The setup is you have the currencies looking for buyers. And newbies trying to pick a bottom. So I would expect weak reversal patterns to fail in a market looking for support. Where is the support? Ill let the market tell me.
Monday I would be weary of chasing the first trend, no matter how good the chart looks. So I would be looking for more weakness in the currencies against the dollar, but I think the market will take some prisoners first. I've seen trends evaporate on Mondays.
How I traded depended on the trend of the day or more specifically how the market opened and responded to price levels. You want to see the London open hold. If not then you've either got chop or a reversal possibility. Sometimes the chop resolves itself going in to NY open, or the market is...
I look at areas of volume as well as specific pivots. An example would be AUD finally breaking below .7580 level. There was lots of trade .7580 to .90, then . 7610 to .25. Volume profile. I don't use it directly but just know where the market has spent most of its time. You can eyeball it from...