Tonight have gone long CAD over usd (futures not cash), three cars avg'd in at 8450, which is about midway of the overnight range (thus far) of 100 ticks. Will hold til each falls to 8330/15/8300 flat, or will avg up/double up if and when 8500 reached, same stops, then close at profit 1-2-3 style of 120,130,140 ticks (8570,-80,-90,8670 ) and again at 170 ticks (8670), with tweaking as needed to get off near the zero. Stops are outsized to the reward due to weird beyond belief price action elsewhere. This slightly-less-than-one-to-one reward to risk is too poor to recommend to home gamers.
Reason: on this day of grotesque price action in Japanese and other Pacific equities, failure of YEN to push to and thru even its high of recent days suggests, if counterintuitively, that usd will not gain on CAD due to economic weakness and more fall in crude. It may due so longer term, say out to and thru 2009, but not short term, ergo the smash-and-grab aspect of this trade.
If all of this reads too prolix for taste, just watch Canadian outperform the US dollar near term, especially or despite price action in other markets, like for crude oil, which oughta lead to contrary result, i.e., CAD loses ground to USD.
Putting this in Ivanovich's thread due to his fond memories of CAD.
Reason: on this day of grotesque price action in Japanese and other Pacific equities, failure of YEN to push to and thru even its high of recent days suggests, if counterintuitively, that usd will not gain on CAD due to economic weakness and more fall in crude. It may due so longer term, say out to and thru 2009, but not short term, ergo the smash-and-grab aspect of this trade.
If all of this reads too prolix for taste, just watch Canadian outperform the US dollar near term, especially or despite price action in other markets, like for crude oil, which oughta lead to contrary result, i.e., CAD loses ground to USD.
Putting this in Ivanovich's thread due to his fond memories of CAD.
