I am not sure what did you see in the market now. Anyway, I don’t really care.. :-p
I can’t find any decent setup in currency market on Monday. There are broken trends, and too early to call a reversal as well. So, I ended up with no action on Monday.
This might be another ‘waiting’ week. Since we have high impact events on the line , FOMC meeting, Non Farm Payroll report (Unemployment report) etc. Watch out.
Some people are talking about bottom of Australian stocks market. Started from mid-December ’07 , we were seeing lower highs and lower lows forming. This is a downtrend, no? Well, looking from weekly chart perspective, we have in fact broken the last low (around mid August 07). OK, breaking the previous low doesn’t mean we are going to see a downtrend, but it gave a sign of weakness and uncertain of current trend.
So, is that a bottom? You might be right. But, I am not jumping into it. It looks more like a bear bull trap to me at the moment. Maybe I am blind? uhm…
Here is the ……CHART of S&P/ASX 200
[photopress:ASX20025Jan2008.jpg,full,alignleft]
Man, I just realize that it is Friday today! I was extremely busy with my work this week (and, ok, I am following Australian Open as well 🙂 ). All I have is just a couple of hours after London session open. So, no trade at all. I hope to get back to swing next week.
Here we go, another rogue trader who’ve thrown Société Générale into 4.9bn crisis.
SocGen said the exceptional fraud resulted from the purchase of huge long positions in plain vanilla futures hedging on European equity market indices that were beyond his limited authority.
The trader likely to trigger comparisons with the UKs Nick Leeson, who caused the collapse of Barings Bank in 1995 had deep knowledge of risk-control procedures from his time at the banks middle-office activities, which SocGen said had allowed him to conceal his positions.
Does it really help to have ‘deep knowledge’ of risk-control procedures ? uhm…
This is something I don’t wanna see, given Aussie dollar is my home currency at the moment. :o: While the world equity markets were beaten seriously, Aussie dollar is hammered. Weekly chart is no longer as beautiful. uhm… We have a new lower high and now trying to break the previous low…What the…. Let’ see how it goes for the rest of the week.
Here is the…..CHART!
[photopress:audusdweekly22jan2008.gif,full,alignleft]
I received an email from one of my forex broker
Dear Client,Please be aware of the substantial volatility in the international markets today and manage your open positions accordingly. If you need assistance, please do not hesitate to call the Trade Desk.
Sincerely,
xxxxxxx
Here is the email from my Futures broker
Dear Sir/Madam
Investing in a Volatile Market
Please take note that the ongoing turmoil in the global financial markets creates a situation where your equity balance may be reduced substantially within a very short period of time.
We would like to strongly advise you to monitor your positions closely and voluntarily put in additional funds (cheques will only be considered received upon clearance) to prevent your equity balance from depleting below the margin requirements.
If you need any assistance please feel free to contact our dealing desk.
Thank you.
Risk Department.
All sounds the same tune. What they basically mean, is, take care of yourself. Enjoy, but DON’T lose your pant. Remember, it is always OK to stay away if you don’t know how to trade at the momement.
I was thinking to post some charts today. I gave up the idea. I read some blogs, and it is interesting to see one thing in common. Quite a few Futures, Stocks and Currency traders were having a tough week. Uhm… So, here again I am putting up this old post by Trader-X. Chasing success. I know, you are going to do that. So read this now.
most people jump from indicator to indicator, time frame to time frame, method to method. They will use something for a few days, hit a bump, and move on to something different all together. One day the holy grail is a XX period moving average, the next day it is MACD or an oscillator. One day it is a 30-minute chart, the next day it is a 5-minute chart. One day it is buying the break of the first inside bar, the next day it is a pullback from the high.
I call this chasing success. The bottom line is the person does not spend enough time on any one method to really understand and execute it properly. They bounce around, and before they know it a lot of time has passed and they are still struggling.
If you pick something and stick to it, you get good at it. Once you get good at it – once you perfect it, THEN you can add something else to your arsenal
Another one, from Eyal, 1 week of not being on top of my game doesnt wipe out years of trading, not in skills and capability nor in money. Man , I like the attitude 😀
Have a good week ahead.
