Considering the overall weakness in U.S equities today, and the blistering panic spread ‘cross the financial blogosphere – my currency trades / accounts have barely budged an inch. As cranky pensioners and smart alec newbies race for the exits, screaming, “pleading for answers” as to why their “all-in” equity trades are in the red, falling like dominos to the wall street fatcats gobbling up their shares…all is calm with Kong.
The EUR even picked up a full 100 pips against the dollar, as U.S equities get taken to the cleaners (and I mean that quite literally), as the last of the weak hands are rinsed of their shares. This may continue ( but I doubt it).
The U.S equities market is the “number one largest measure of risk” I currently track in my pocket full of charts and graphs. At every crossroad, at every turn – no matter how sure you are of a particular trade – you will be tested. It is so painfully obvious, through observation of currency movement – that this is the final stage of “shake out in weak hands” as the big boys are buying shares hand over fist.
How do I know?
- How about complete reversals in several currency pairs suggesting “risk on” taking hold.
- Only modest pullbacks in pairs that have already reversed (I will be adding to these..not selling).
- The EUR gaining 100 pips against USD, as well JPY and even moving on CAD!
The currency markets are not at all in step with the sell off in U.S equites, and most certainly paint a clearer picture of the road ahead. You can trade it, or you can watch from the sidelines – but you can’t win if you don’t buy a ticket.
i have entered in sell orders for my gold share calls and shares,
good for 30 days
looking for some modest profits and then see from there…
best of trading to you all !
What are going to add to?
I am going to continue to add to both AUD/USD as well NZD/USD as they have yet to really move. Otherwise..I will likley take profits here today, and reload across the board. As well several other pairs – looking at the dollar FINALLY falling…and risk coming back.
EUR/AUD – long
CAD/JPY – long
Id watch EUR/AUD like a hawk, and have a very very small postion. Otherwise….CAD/JPY long is the bomb!
11/14/12 @ 10:50 200000
11/14/12 @ 17:10 100000
11/15/12 @ 04:20 100000
Schmed—Im not sure how your orders / platform posts trades but…..are those 200,000 , 100,000 etc?
Or just …..2 contracts…and 1 contract?……even at 20 contracts…or 10 contracts – this is absolutely over the top leverage, and I hope your account balance and margin requirements have been taken into consideration. Have you considered what the implications are if the trade moves against you even 50 pips?…let alone 100?
Kong – ….
CADJPY Long 100,000 80.71800 80.997 80.997 81.011 $343.65 $0.00 0.35% $99,422.32 $99,765.97
I can’t make sense of that….please just tell me how many contracts you’ve purchased.
For every single contract purchased….you must hold (in real cash) “x” number of dollars in your account so…..
On a simple small scale….If I purchased “1” contract of CAD/JPY ( on my platform ) I am required to have …..499.14 cents…..if I buy 10….then I need to have 4991.40 cash in the account……..
If I buy 100 I need to have $49,914.00 cash…..in my account to honor the margin requirements.
So……you are making a single trade?…on one currency pair….at 100 contracts – with 49k margin requirements?
I think I wrote an article you may want to read.
1000 X 100 = 100,000 So 1000 contracts X each contract is 100 shares = 100.000
Any comments on this post by Peter Brandt on USDJPY? http://peterlbrandt.com/bull-market-in-usdjpy-has-begun/
Ive been saying it all year….and it is / will be one of my few “one and only” – long term currency plays…..as U.S is eventually to raise rates before Japan…hence…Yen falls to lowest on the totem poll.
Ive never heard of the guy…and don’t read other analyst.
Thanks Kong … I haven’t been following you long enough to be sure your JPY idea was long-term and wanted confirmation. Keep up the nice work, eh.
Steve (fellow Canadian living off the avails of past market gains)
Great Steve…I so appreciate the support, and wish you all the best in your trading.