Wednesday, June 15, 2011

QM trade July 15, 2010 - Three Straight Days of Losses

3 days of trading losses adding up. Getting to be too much will step away from markets and reassess what the hell is going on. 

Saw price reach above last nights top and entered at 100.2 +  and it was most definitely a bad idea to enter at this level. As the EUR/USD is leading everything, the dollar is leading everything. Equities left in flood and pour straight into bonds. Risk aversion rampant and I was betting risk on (everyone pouring into the dollar $DX magnificent erection mode). A fool trade in a clearly risk off environment. If prices don't break lower than 97.5 again I have set my stop too tight, or I should have set it tighter. Too much bleeding will need to re strategies after loosing so much.

Long term support is holding, but it seems I am not account for volatility too well. I tried to buy on breaks in each case above and ended up on the wrong side. Long term view did not match short term sentiment. Each day we were seeing over 3 dollars covered. Despite the ranged environment on the daily chart the volatility has been high. The key drivers have been the dollar and the European Sovereign Debt crisis. 

I will be doing analysis and forming a proper thesis to trade next week. This week was a total disaster hopefully the last two weeks I can correct this.

Analyze Capital LLC

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