WOW, what happened today huh? Well, if I was “Goldie” (Goldman Sachs) and I knew that I was going to release a report like they did today ( and they knew) I would work may way in to a rather large dollar short position across the board (my guess is they did this 24 to 48 hours in advance). For no sooner did they time that just right, but the market shot up like crazy against the dollar. Euro, pound, AUD. simply amazing. It is my belief that these people are TRADERS (gasp!) and that they have unusual insights into the markets because of their rather large team of the “brightest and best” in the world. Not to mention their deep pockets. And, as traders, with a STRATEGY, they executed it flawlessly! checking out the following chart we can see that there WAS a nice failure at the neckline of the 4 hour H&S (inverted) setup. Prompting some to enter fresh shorts with stops just above.
This only helped to add fuel to the fire. These shorts had to cover and cover quickly when the breakout came. As many of my roomies know, I took a “hit” today on this pair. Its not easy, but when this happens, we just have to hit the “delete” button and go on. It looked like a great trade, and thankfully I had a sensible stop so it wasn’t to bad. How bad? Well, a week should recover it. These things do happen. Stuff like this reminds me of how much I like scalping. LOL. Going after the big kill is always fun, but, the stops can hurt too. So, anyway…. Always remember to look at a trade from Both sides, if you can. Someone is always taking the other side of your trade. A great trader once said to look at where the greatest danger lies. In this case the greatest danger lay in wait to the upside. Whenever we see a short squeeze like this (and believe me it has a certain feel to it), we should really get on board. Another trader in the room today was more “in tune” than I was. He actually recommended this as a long. But I failed to see it, even when it was happening before my eyes. Can I blame it on being sick? (I caught a cold)…. No, not really. It simply got away from me and I did not get long. Another great trader said that he made the most money when he was in a position, realized he was wrong, got out and doubled up in the other direction! Good advice! Lets try and keep a handle on that one. Anyway. If you ever get “lost” in a trade, simply killing the trade has an amazing ability to clear your thinking up quite a bit. Good luck and happy trading all. Till next time. RobinHood.
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