1-17-2008 Good News - Bad News
OK, bad news first: I got stopped out on my USD (the ETF not currency) trade yesterday which really didn’t come as that great of a surprise to me given how thoe trade unfolded the past couple of days. The sliver-lining to this trade now is the potential to jump back in it for an even stronger snap back to the gap from 3 weeks ago that appears on all the major indices as well. The record volume on yesterday’s USD drop could indicate that a little bit of accumulation is happening and I’ll be watching carefully this morning to see if I should jump back in with a close stop under yesterday’s low.
There has been some massive unloading of Gold here in the past couple of days on 2x its typical volume. This may very well signal that the great run is coming to an end. Luckily I sold 75% of my holdings last week, but am waiting for a divergence or much clearer signal to unload the remainder.
The EUR/GBP trade is performing very well and has almost reached it’s target. I have taken profit on half the trade and brought my stop to Break-Even. I’ll watch this closely today as well.
One market I’m watching closely today is Mexico. The overseas markets that have been hammered recently are up today in Premarket trading with Asia leadin the way. Then I took at look at this Mexico ETF and had to smile. Look at that tail from yesterday and what has happened each other time over the past year that such a tail was printed. The only possible drawback this time is that teh volume isn’t clearing 10-million like the other times…. should be interesting to watch.
with a Reader
