yenFirst week back from vacation and things got busy. Lot's of moves, everything is jumping like a yo-yo. Short term traders should be making a lot of money now since daily moves are so big...
At around 11 AM here I'm usually done with trading. That means I don't enter in any new trades, all trades are either closed or left alone till at least evening. It's then when I turn CNBC on and not so much watch it as listen to it for about an hour or so. During this time, I think it goes through a day, they have a segment with one of their correspondents, Rick Santelli, I believe. Lately this guy started to have some comments
on the “carry trade”. In his reports he claims that EUR-JPY is “a proxy for the carry trade”. If it's over 164, carry trade is alive and well, under 164 it's dead. Really confusing, what the hell is he talking about? Does he even know? It's truly amazing how of all a sudden everybody not only has an opinion, but is also an expert.
Here is a look at this “proxy” last week.
Wild moves, seems like you can loose or make 100 pips at a drop of a hat. Even trading of 15M and 5M charts could have produced some stunning results. Personally, I'm not very good at extremely short term trading, so I leave for others.
Our website has been updated and can be viewed here.
http://www.spectrumforex.com/weeklycomments/08122007.html
My personal trading has been concentrated on JPY crosses. It was a kick ass ride, if you ask me. I love it when Yen goes on these periodical rampages. When I used to participate in Forex forums, people were always reminiscing about the “Forex of old”. Looks like it's back, for now at least.
When I close trades partially, that's usually 2/3 of position that's getting closed. GBY-JPY is really deserving it's nick name, “the beast”, 300-400 pips moves left and right.
From where I sit things are getting tricky now. On Friday we broke under previous lows but failed to continue and close there. If somebody entered on that break, logical stop is 300 to 500 pips away, depending on which pair. One must have a strong constitution for these kind of trades. If we get through Friday lows again, it should be more significant. In the meantime we might be locked in some wide range, giving traders on both sides new gray hair. Well, I'll worry about it tomorrow.
