.. or running out of steam at the crossroads? While there is more than enough divergence on many levels to give a resounding yes, the only thing that matters in the big scheme of things is price. I had no hesitation at all to start another small short position this afternoon, but well aware that risk management is the only game in town, not bias, not the news or what might come next down the pipe. The little bit of time I took away from TTW since Sunday has served to make myself review my trading rules carefully for the one millionth time and stay open to whatever they serve up next. What struck me as interesting in today’s action was the RUT most of all. I consider this the risk trade, but not only did it see some pretty decent selling, the Dow, considered to be more of a safe haven just couldn’t get legs either. I’ll add some indicator charts in the posting section later on in an effort to save some space for scrolling.
Economic news tomorrow includes: International Trade and Jobless Claims at 8:30 AM, Services Survey at 10:00 and Nat Gas Report at 10:30. (good luck Mau and Big) At 11:00 is the 3 and 6 month bill announcement, followed by the 30 Yr bond at 1:00. Friday includes Retail Sales, Consumer Sentiment, Business Inventories and will wrap up with Little Turbo Timmy speaking at noon.
Please remember that although this is not OPEX week, the MMs will take no prisoners and will make hay as soon as they see fit. Be careful, plan your trades whether you're long or short and don't get too crazy. One last item: Thank you Brandt for sharing your expertise with us last night- very much appreciated by all of us, and we look forward to even more.
Have fun tonight, FX Traders! (and Alpha- if you happen to stop by again, you’re on vacation, remember? ;-) )
Don’t worry BigIsland, I won’t torture you with Alanis Morisette. (yet)