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Tuesday, June 01, 2010
CRASH AND BURN
Another overnight stock index crash resulted in a stop out in my Dollar short I was in. One thing that I just accept nowadays is that whenever I go on vacation or buy something expensive after a good trading run, my next trade will be a loss. This has been going on for years, so I just accept it. It must be some type of backwards punishment from somewhere. ( Hopefully not from above! )
This market along with many others are still setup for moves in the next couple of days. Of course if we just keep crashing in the stock market, many of these moves will not take place. However, I just hunt for my setups, and place the orders. I cannot control if they get filled or not, I can only control myself being ready to take action if they do. We have alot of correlated trades once again. It appears to me the Bond Market is setup for a decline, Stocks and currencies for a rally, the Dollar a decline. These are all basically the same trade unfortunately now, so size adjustments will have to be made in the event they all were to trigger.
We had for a period of time, a decoupling of all of these inter market relationships with stocks, and it now seems to be linking back up again. If you notice now all of these things seem to be moving together again, with the exception of the metals. Gold and Silver seem to be doing their own thing. Copper is also in on the game, looking very similar to a chart of the SP 500. What I am looking for here now is a down close today in most of these except the Dollar and Bonds( requires up close ). Then I will be looking to play breakouts of them in the opposite directions tommorrow.
One more short post tommorrow, then I will be back home and it will be business as usual.