Thursday, October 28, 2010


It's a Pomo day and I am watching to see how high the risk bounces go.  I am still in sell rally mode.
Probably not doing much for the rest of the week.

Famous last words, sold some crude and watching AUDCAD
Crude balance of yest short stopped out 82.25 (-0.5R)
Crude short 82.40 stop 82.70 PT 81.50
AUDCAD short 1.0045 stop 1.009, 1st PT 0.985
USDCAD stopped out (-1R)
Crude short closed 50% @3R 81.50 (+1.5R)
Crude stopped out balance @1R 82.10 (+0.5R)

Open trades:
USDCHF long 0.9710 stop 0.9680 PT 1.00 - 1/2 position
EURGBP short 8860 stop 8890 PT 0.85 - 1/2 position
EURSGD short 1.8040 stop 1.8190 PT 1.7650 / 1.70
SILVER short 23.95 stop 24.30 target 22.25


  1. Hi Nic,

    One of the indicators I look at for general market sentiment is AAII Bull/Bear ratio. The newest reading was released today and the ratio is now at 2.37x, the highest reading since 2007. I understand everyone is really excited about QE2, but the optimism seems really excessive now. SPX, UK100 and NDX and pretty much all risky assets have been painful to short recently, but it does look like correction is really overdue. Esepecially if QE2 is not as good as expected.


  2. Not doing much? So...Peace Of Mind, Okay? Enjoy!

  3. Alex I definitely agree with you. The only thing that makes me a bit nervous is all the chatter of a trade imbalance deal between the US and China and a *surprise* Yuan revaluation this weekend.
    That would be very positive for risk/equities.

    99 Its a Pomo day and I am not sure what I want to have going into this weekend ...

  4. Understood. P(eace) O(f) M(ind), O(kay)? Enjoy your long weekend if it works out that way!

  5. Ben has lost his mojo; POMO no mo'.

  6. Made my comment on this in yesterday's post :-)

  7. Thanks Dennis. I was thinking AUDCAD would go a bit higher (1.007), but often when price breaks a major trendline it only retraces to the breakout level and not to a fib or retest the trendline.