“In other words … it’s US versus the scumbag banks!”
It’s taken a while this month to be sure … too long for my comfort, but the
numbers were there this morning in the call spreads in GBPJPY, and we
made the trade. As signals subscribers already know, this entire month has
seen exorbitant premiums … so much so, that plenty of days you need to see
ranges in excess of 150+ PIPS just to break even.
Crude oil continues to be a disappointment, and I don’t see relief here until
we get closer to the OPEC meeting in May … until then, it’s a constant back
and forth battle between supply concerns and weakening global growth, and
depending on what day it is, who are the ones that have to be concerned
about price today, the longs or the shorts … in short, a “chopfest” for the ages
with little interest in establishing a trend that is going anywhere.
Both GBPUSD & GBPJPY seeing the infamous “Flying Wedge of Death”
[FWD] today, as scumbag LP’s make sure both long and short position
holders feel the pain … moves wickedly quick on every little rumor, half
rumor, and stop hunt they can dream up. As the day has worn on, I get the
distinct feeling delay is going to happen again, regarding “Brexit”, and that
more than a few accounts are long … I don’t get the impression the trade is
short, and that’s where the real risks lie, IMHO. What it means is simply
this; “any and all rallies from here on “Brexit” positive news, unless off the
wall crazy positive, will be met with selling cuz people are already long and
will be looking to liquidate" … well, you gotta sell to somebody, and I don’t
think the banks are going to be willing buyers. On the downside, it’s
radically different, cuz it could get ugly quite quickly over any real
disappointment in Cable’s prospects. We’ll see.
Today’s trade initiation ticket directly below.
click on images to enlarge
On the rally up to within 1 minute of the high for the day, I liquidated. Quite
frankly, the trade was getting too crowded given 1) the length of the day, and
2) the almost straight up action over 2 ½ hours. The liquidation ticket directly
below.
And from here, it’s been nothing but down, with some chop mixed in and
some sharp rallies to shake some traders out. What’s important to recognize,
though, is how the call spread premiums shrink when the market corrects or
retraces a move up/down. There’s nothing subtle about it, they kill premium,
and today is no different. All told after commissions, we netted about 50%+
on risk capital in the trade.
correctly … we’ll see what happens. I’m outta here … until tomorrow mi
amigos … Onward & Upward!!
Have a great day everybody!
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