THE DAY BEFORE

                                      It Was That Kind OF Day

The day before NFP [which is tomorrow at 7:30 A.M. Chicago time] usually is a choppy affair. Complicating things today is the fact that most markets have been beaten down to a point where some kind of snap back rally is to be expected. Most of the Asian session and into the European session saw sporadic bouts of short covering in the Euro [EURUSD] where prices moved erratically higher.

As we moved into the U.S. session, we stayed within a few pips of the high for about an hour before the market started losing ground. Now, there aren’t many sure things in trading, but you can pretty much count on the high and low of the day to be very brief in time. Errr, except today.

This was the reason for not selling; we simply spent too much time there for it to be a high. What I was looking for from this area [1.2420] was a spurt of 10+ pips to a new high followed by a quick retreat; this I would have sold. Unfortunately, we didn’t get it.

Later, as prices moved to a new low, the algorithm did give a buy signal down near the bottom. I basically ended up scratching the trade [Ok, a few pennies when it came back] as I am reluctant to be long EURUSD in this environment. So, pretty much a nothing day except for a few pennies.

Tomorrow should be interesting as weak jobs data should prevail; question is how much does the market believe QE3 is on the way at the June Fed meeting? We’ll see tomorrow.

Over the weekend I will be making changes to this website to reflect our new PAMM. If you would like to participate, drop me a line at vegasxau@ymail.com for details.

Have a good day everyone.

-vegas