Why I’m In Sharp-Shooter Mode
There are times when I
am trading and talking with my subscribers via the
Audio Feed and I am thinking to myself, “Man,
there is nothing going on, yet I need to be here.” There is that nagging
feeling that I need to be on stage the whole day. Trading solo without others
looking to you for direction is pretty straight-forward, it is either there, or
it is not.
Ever since Rick Burgess started writing
his columns I have made a point to read them. I look at everyone’s articles
from time to time, but a guy who is in the pits resonates more with my trading
style. I can tell you that not only have the articles been excellent, but more
importantly it has provided confirmation that I am not going looney. Each day
when I walk away having only taken a handful of trades I wonder if I gave it my
all. You see, being on stage each day is not easy. “Am I being too careful?”
Not wanting to call out trades for fear they may lose.
Most of the time I do as I always do, which is
trade only when it is prudent. The difference currently is that there are fewer
swings at the plate (pardon the play-off pun) each day. So when I read Rick’s
article last night only to hear how quiet it was in the pit and how chopped up
the locals got, I knew that I was again reading the market correctly, caution is
still the operative word.
Nonetheless, the day was a good one. It was not
until the later half of the afternoon session that I finally spotted a set-up
(in fact I was watching it all day, waiting for a level to be taken out) and
attacked it. It paid off immediately, consolidated and rode that final hour
move up alongside the S&P’s.
The overall market however, S&P futures in
particular feel very heavy. Dave Landry offered the same conclusion, by way of
indicators and technical analysis. I think this explains why the market has
been trading so lousy for several sessions now. There is simply no conviction,
either way. The market is priced for perfection, the evidence needs to arrive
soon. While at the same time, there is no real negative news. I dunno, makes
sense to me. So, I continue in Sharp-shooter mode, overtrading is a fool’s game
right now (it always is, but even more so now).
Turning to FX briefly, the
AUD continues to grind higher. It got a boost
last night around 7:30 PM PST on the heels of favorable employment numbers, this
news offered a quick volatility trade. Longer-term the trade still looks solid,
an entry from .6885 gives us some room to try and let it play out. The
favorable jobs report now makes almost certain that the Australian Central Banks
next move on interest rates will be higher. This will further the interest rate
differential between AUD and
USD thereby attracting yield hungry investors.
The Canadian Dollar
(CAD) is beginning to re-test the critical 1.33 level. Look for
further upside vs the Dollar is this level gives way.