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The ACD Method
- Thread starter sbrowne126
- Start date
Quote from Shanb:
Quiet market but XRT-FCX spread pushing 3.5%!
Yeah great spread today. Just to gain some insight here, choppy and range bound days create the smoothest spreads and biggest spread moves. Strong or weak trending days produce choppy spreads. There is an inverse relationship. Since the market chops 80% of the time, spread trading trends 80% of the time. You can see now why so many people like spreads.
I've been neglecting FX for awhile and since there have been some major developments in the FX market, I wanted to post my Yen charts. The Yen is currently in the midst of a major breakdown against every pair. We had solid monthly confirmations over a week in all of them. Check it out. These are some pretty big moves in the Yen world.
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Quote from Maverick74:
I've been neglecting FX for awhile and since there have been some major developments in the FX market, I wanted to post my Yen charts. The Yen is currently in the midst of a major breakdown against every pair. We had solid monthly confirmations over a week in all of them. Check it out. These are some pretty big moves in the Yen world.
Wasn't one of Fisher's trader long anything against Yen? Also, the volume in CCJ has been really nice. That Fish sure knows a thing or two...
Quote from Maverick74:
I've been neglecting FX for awhile and since there have been some major developments in the FX market, I wanted to post my Yen charts. The Yen is currently in the midst of a major breakdown against every pair. We had solid monthly confirmations over a week in all of them. Check it out. These are some pretty big moves in the Yen world.
Let me further add here, I've always talked about the significance of clean moves and the concept of rarity. What this means is, when you see a clean breakout in an instrument that has not broken out for several months, the likelihood of the move being sustainable is rather large. In this case, the Yen has not broken down in most of these pairs in over a year! This is VERY significant. I cannot stress this enough. The upside potential in these trades is huge at this time. Might possibly be the biggest trade of the year. Book mark this post.
Looks like FXY is optionable, but the spreads are a little wide. Might just make sense to look at the shares, (again, understanding that it's rather illiquid).
JYF, JYN, and YCL/YCS are extremely illiquid
Just in case you don't/can't trade FX...
Mav, any suggestions on any of these, or is this a straight FX trade?
JYF, JYN, and YCL/YCS are extremely illiquid
Just in case you don't/can't trade FX...
Mav, any suggestions on any of these, or is this a straight FX trade?
Quote from Quon:
Looks like FXY is optionable, but the spreads are a little wide. Might just make sense to look at the shares, (again, understanding that it's rather illiquid).
JYF, JYN, and YCL/YCS are extremely illiquid
Just in case you don't/can't trade FX...
Mav, any suggestions on any of these, or is this a straight FX trade?
The ETF options are very liquid. Don't worry about the bid/offer spreads. They get arbitraged pretty easily. The Yen is not terribly volatile. Don't expect this trade to move like AAPL. You can use cash FX or even Yen futures. I personally like GBP/YEN as the pound is stronger then the dollar and I'm more bullish on GBP/USD.
BTW, the other thing I love about this Yen trade is that nobody else on ET is talking about it. Last July when I was on this very thread pounding the table to buy Bonds right before the critical debt ceiling raise in July, nobody on ET was even talking about Bonds, let alone buying them. It turned out to be the trade of the year. Same here. You know, the FX threads are pretty active here and I am shocked at the lack of actual content on them. Other then guys bitching that nobody makes money trading FX, not one solid idea has come out of those threads. The fact that those guys are not even watching the Yen and even discussing what could be perhaps the biggest FX trade in a decade, tells me that this is the trade to watch.
Quote from Maverick74:
BTW, the other thing I love about this Yen trade is that nobody else on ET is talking about it. Last July when I was on this very thread pounding the table to buy Bonds right before the critical debt ceiling raise in July, nobody on ET was even talking about Bonds, let alone buying them. It turned out to be the trade of the year. Same here. You know, the FX threads are pretty active here and I am shocked at the lack of actual content on them. Other then guys bitching that nobody makes money trading FX, not one solid idea has come out of those threads. The fact that those guys are not even watching the Yen and even discussing what could be perhaps the biggest FX trade in a decade, tells me that this is the trade to watch.
EVERYONE, this is valuable information. Many Thanks to Mav on this, and if you followed along, the bond trade last year was EPIC!
Thanks again Mav
Crude oil breaking out above 105! Spoos pushing 1370 here, The Osama highs are upon us.