Trader Lounge: Meet At 3 PM
Another day of dodging bullets. As you know from yesterday’s
post, I went home short EURUSD; all it took was 12 hours of mind-numbing back
and forth [with the obligatory bump up to try and shake me out] for me to
basically scratch the trade when I had the chance. When the “Flying Wedge of
Death” hits [see my other post], breaking even is a victory.
I have stated this before, but I want to reiterate it again
now; I have never seen so many FWD’s in such a short time frame [the last few
months] in my 30+ year trading career. Normally, you can expect to see this
about 3-5 times per year. Lately, it’s been 2-3 times per week!
What makes these so perplexing and difficult to deal with
can be summed up pretty well by the last 2 days; Thursday sees a sharp sell-off
that went through all support built over the last week on the hourly charts in
about 90 minutes; the market closes [we are short] and there is absolutely no
follow through. It’s like we went in time to another day.
“Hey, where’s the
selling? Where’d you guys go?”
Everything is link driven by some news leak or rumor; Europe
is saved, Europe is doomed, rinse and repeat.
Gold is going to $10,000 / oz, gold is toast; you get the idea. Unfortunately,
markets rip and dip off of this and make trading very messy.
I’m not happy about making a few pennies, losing a few pennies
[excusing the one-off gold debacle from last Friday that had us up 5% and then
down 12% in a few seconds.], rinse and repeat. But I do know this; time periods
like we are going through now will pass. No way does the FWD stick around.
So, a rather boring last 2 days where we end up losing a
fraction of a percent.
Ending NAV: 0.8911
Have a good weekend everyone.
-vegas
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