Friday, September 30, 2011

Choppy Choppy, We long Poppy

The last few days has seen the fade trade work well - if the premarkets are weak, you go long on breakouts and if premarkets are strong, u fade the strength.

Last night the German vote was largely a non-event, the price was positive leading up to the vote, but the vote's news and positive economic data wasn't able to create a push past the resistence levels in the Euro or AUD - a significant gravitation towards the range conditions remain.

However, today's markets are once against trading at the bottom of the new breakout range - which I define as 1.3520 to 1.37 - trading the ranges here - going long at 1.352 and short near the top, has seemed to work well, with another trend position if the prices follow through with some catalysts to the upside at 1.37. The key is to keep an eye on the sp500 as the US market futures seems to indicate how traders are positioning with their risk-on trades.