Have You Noticed This Change?

Are there stocks that are trading with better range? Absolutely, which is my point. For many months, even years, the above stocks have been a staple of my day to day trading. Over time, sometimes not so obviously, these stocks just continued to give less and less for the same if not more effort. Time has a funny way of preventing you from seeing subtle and not-so-subtle changes.

With that in mind, the stocks and even the markets I am trading are changing each day. Two weeks ago I threw the towel in on the above stocks. Stocks like these below as well as stocks of the HUI (Gold Bugs Index) are trading far better.

Most traders I talk to on a day-to-day basis are all now talking about how they are looking at stocks they never traded before and even at other markets. There is a valid reason I have pursued FX aggressively. Those markets are moving, they are incredibly liquid and have great range. Sometimes you just need to do a little house cleaning to put yourself back on a more robust path.

I have begun to leg into a short position in the EUR/AUD. The failure at the 50-day ema and overall down-trend bodes well. I will add the full position on a break of 1.633 (see chart). Yes, the EUR is strong, but so is the AUD. However, it is safe to say that the AUD has a more solid "story" and fundamental back-drop behind it, in addition the EUR could be vulnerable to lower ground going into year end. So, rather than a pure play on shorting the EUR versus the USD, which is a counter-trend trade, the EUR/AUD may be a better way to play a weaker EUR.

As always, feel free to send me your comments and questions.

Dave