Wednesday, May 30, 2012

THE ONE-WAY TRADE


                                              It’s Never Easy

Right now, EURUSD looks to be a one-way trade; sell it anywhere and come back when it’s zero; history says otherwise.

Today we got a brief glimpse into what a market that is vastly oversold does when confronted with a rumor that makes no sense; up 50 pips in about 2 seconds, thus wiping out a whole lot of shorts who piled in earlier today.

We had a couple of scalps that were basically scratch trades and I have positioned in an EURAUD short position that I’m hanging on to over rollover; we are long AUD and short the EUR. We will see how this turns out, but it gives us a play on further Euro weakness with at least some upside protection with AUD [hopefully].

Have a good day everyone.

-vegas

Update 3:10 PM

I decided to close the EURAUD short position with a tiny profit and not take it through rollover. So, on the day we made a couple of dollars but nothing like I was hoping. Gold retreated and so did equities, and I'm thinking the only thing holding up AUD now, relative to the EURO, into the rollover is today's [Wednesday] 3 day charge for short AUD positions at 4:00 PM [Chicago time].

Update #2 4:05 PM

Continued erosion in stocks and gold after hours saw AUD make new lows into the rollover. Very good thing I got out when I did with profits.

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