Friday, January 14, 2011

FX on the edge

Which Edge you say?

Euro is at a very important point.

Fundamentals and technicals say it will be down.   However, if it breaks up, and you are short as is my Euro futures short, you better be ready to take some lumps and figure out the next trade.

The blow off top is the perfect sign the big traders ran this up to pop stops hiding behind prior high...that is what they do before they withraw their bid

Cable is nearly the same situation.

If you see 3 news articles about Euro stability, that strengthens the short stance.   If you see 3 articles about "the Euro is toast" better watch out shorts!

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Insightful and Useful Comment!