EUR/CHF…unsustainable
while structured products desks all over are likely busy with bullish EUR/CHF notes, risk manager minds understand this chart is unsustainable. Something will give and those who bought the bull structures will once again be left holding the bag. And so the game goes on…
Into the weekend
A slow drip lower today and I remain with my 1/3 short positio in SPY and almost all cash. One would expect some sort of bounce near the 200 sma on the S&P 500 (right here right now) but that doesnt have to occur into a weekend. We must stay away when things are […]
Gap Update
There are so many air pockets (gaps) here any little wiggle will move us 20 handles in a hart beat. This here is the chart of the S&P 500 Emini Futures (March)…5 minute chart. Note the blue space and respect the massive potential for big moves here in coming hours and days.
Mid-Afternoon Update
Little to salivate over today in terms of pure price action so far….although we are dancing on the edge of a samurai knife here with a massive 30 point gap below and lots of air pockets above to fill as well. Something will give soon. The environment here remains lethal so stay away from it […]
Morning Thoughts October 12 2011
After an out of the gate rally on Monday that lasted all day and closed at its highs, Tuesday was marked by some hand sitting as major U.S. equity indices digested the massive 9% gains in the case of the S&P 500 of the past six trading days. The Russell 2000 much like the S&P […]
Banks at important near-term resistance zone
banks are running into initial resistance her after a massive rally off last week's lows. Stocks like MS are up 30% off the lows and the BKX and XLF are up about 12% and coming into their 50 day moving average and resistance line. some consolidation here would be healthy before then possibly heading higher […]
Taking profits in EUR/USD long position
we are long bucket 2 FXE and the eur/usd fx cross now it our target. we want to take full profits here at the open. there is better resistance near 1.39 and 1.40 but 1.38 is more conservative and was the profit target we set at the open of the trade…gotta stick to the rules […]
Trades we want to do upon a higher low confirmation:
if and when we put in a higher low in the major indices we want to buy: MS, AKAM, RIMM, HIG …we are keeping this on our radar…
VIX at a big support level…if it holds watch equities lower…
Boring Tape…Patience is needed
Buying into a 11% rally (SPX) in just 6.5 trading sessions is bad risk/reward. the trading week thus far is boring and is requiring much patience. patience however will get rewarded if we exercise discipline. at this stage our portfolio is fairly flat and we are looking for a little pause/pullback of this rally. until […]