CAN TRADING CONDITIONS BE ANY WORSE?

                     What I Really Need Is Just One More Problem

On Monday, I am going to address today’s trading issues. I’m going to hold my tongue for now; discretion being a virtue and all that. But come Monday ….

The fact that I made a $1.10 today is a miracle; truly, under the same set of circumstances I don’t know how anybody could have done any better. It could have been worse, and I am slowly counting to ten every 5 minutes to cool, what is otherwise a very hot cauldron of frustration, my temper.

But, like I said, I’ll have a lot more ro say about today on Monday.

Today was our last trading day at HotForex for our PAMM. On Monday [or maybe Tuesday at the latest], the remaining monies will be wired out and switched over to our new brokerage house in a few days.

Over the weekend, I’ll be updating and revising this webpage to reflect our new paradigm. I’ve got a few surprises coming next week so stay tuned.

Have a good weekend everyone.

-vegas

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

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.

A BAD DAY FOR SPAIN

                                               3 … 2 … 1…

It was a very slow day from the Asia open into the U.S. session. EURUSD only had a 60 pip range and gold was sitting there with about an $8 range at 8:00 A.M. Chicago time this morning. Trading was very slow, with action more like the stop hunt variety; sharp moves with no follow through in any direction.

Then Egan-Jones down graded Spain from BB+ to B, at about 10:40 A.M. and the race to the bottom was on; gold hurling down $30 before it was over [the last $10 a pure 100% dealer stop hunt] and the euro going down about 60-70 pips.

Earlier, on a buy signal from the algorithm, I got long EURUSD and we rode it up for about a 0.2% gain on the day; I got out when prices stalled but equities kept rallying.

Today was one of those days that really lacked any kind of trading action. Granted the ranges got put in, but not in the traditional way I would like to see. We get much better action when prices start making their move in Asia or Europe, then finishing up in the U.S. session.

This is our last full week trading at Hotforex. If you would like to participate in the new PAMM at our new brokerage house, drop me an email at vegasxau@ymail.com for details.

Have a good day everyone.

-vegas