Wild ride from the FOMC

Up and down up and down,... up??? The news appeared to have a net zero effect on the market. Lots of whip saw on the event. I was stopped out of the Eur/Usd again and then got back in. So I grabbed a couple of dollars and re-entered the trade. Also added to the Gold and back in on Silver. Remember you can trade IAU and SLV if you would like to trade the ETFs/iShares for gold and silver.

We are back over 200% again and still have 2 weeks to go for the end of month two. With gold and silver breaking out, I think we have a good chance.

Good luck in your trading.

Blake Young
Random Acts of Forex

Testing Barriers and stop losses

This morning there has been a bit of volatility as many currency pairs have pushed to the years or multiple year extremes. These attempts have included a bit of volatility and I have been stopped out of a number of trades and still have signals to get back in to the trades. This can be aggravating to be stopped out and have the trend continue, but it is better than taking to much risk. So, even though I was stopped out of the Eur and the Cad, I am back in those trades.

I have added to my gold position as gold makes an attempt at $700. This could be big. About 6 months ago I commented to a number of trader friends that I wouldn't be surprised if gold broke $1000 within 2 years. It certainly appears to be headed that direction.

Now pay attention here. FOMC Interest rate announcement. What is it going to be? Even though Bernanke said he may be done raising rates, analysts are expecting we are going to get another rate hike to put the discount rate to 5%. If the analysts are right and the market is expecting this, imagine the implication if there is a no rate hike. If the market has priced in the hike and their is no hike, we could see 150-200 pip move after the announcement. The question is, is the Eur/Usd reflecting expectations of a hike, no hike as Bernanke hinted at, or something in between. No matter what happens, I expect a lot of action tomorrow. Maybe a good scalping time. This could be another reason to play gold, due to uncertainty.

Below are the current positions. Note the entry price has changed due to new positions or adding to previous positions.

At a live event.

Do to presenting and the time required involved in the class, I am going to do my best to update this but updates may be late or missing while here.  I will send an email for every update between now and Friday if you are on the email list.

 

Thanks for your understanding

 

Blake Young

Random Acts of Forex

Non Farm Payroll

The ECB did what as anticipated and caused very little fluctuations. I am still expecting a big move this week, so let's see what the non farm payrolls will do. There could be a lot of volatility in the announcement. As I said in the previous blog, I will probably tighten stops right before the announcement and then trade the announcement. This means I will either be stopped out and flip trades or add to the positions as it runs after the announcement.

I was stopped out of the Usd/Cad due to volatility. I have an entry order at 1.1017, allowing a break below the lows.

I am looking at placing an entry order on gold and silver, both long of course. I haven't decided at what level to place it yet. We will see.

We haven't recovered all the uncaptured gains yet but we are still doing well and on track,and uncaptured doesn't count until you close it out.

Below are the current positions and current stop losses.

Have fun with the announcement. It could define the dollar.

Eur/Usd Long Trade

The Eur/Usd long entry position I placed yesterday was triggered and the Gbp/Usd is on a run.  I am buying into the Gbp as well, as of late the Gbp has shown more strength than the Euro so I like that trade better.  Danger being, non farm payroll in the morning.  I will probably tighten my stops up and trade the announcement tomorrow morning at 8:30 est.

 

 

Splitting the Euro

Tightened stops again, as we can see there was a pull back and silver slammed down and took us out of the trade.

Enough of the past, let's talk tonight. Any surprises from the ECB either in rate or in guidance will push the dollar one way or another. My best guess, if they change their guidance or alter the expected rate hike at all, the Eur/Usd will move 100 pips in the middle of the night, followed by another day or two of continued movement. I have place entry orders to add to my position if the Eur/Usd climbs by more than about 60 pips and I have my stop placed to stop me on a drop of about 40 pips and a short sell down about 60 pips again. So I don't care which way it goes, I plan on making money either way. This could be another pivotal day for the dollar and define a pull back closer to 1.20 in the next month or a push to nearly 1.30.

Good luck and happy trading.

Blake Young
Random Acts of Forex

I'm tired

Call it fatigue or call it intuition. I am tightening all of my stops a little tighter than usual. Note the stops in some cases are within the range of the day instead of below the lows of the day. They are not too tight because I wouldn't want to get stopped out when these could continue to run. You will note that as of today our equity position is now up over 200% since March 23rd. I know this is very aggressive to state but I would like to see us reach 100% by May 23rd which would put us at 300% ytd/2 months. Here's hopeful thinking. The reality is I am on a hot run and enjoying every minute of it. We will see how long this lasts.

Happy Trading
Blake Young
Random Acts of Forex

Mid day update, stopped out on the Usd/Jpy

I didn't get a chance to post an update yesterday, but I did adjust my stops and got stopped out of the Usd/Jpy, which then continued its run. Here are the current positions as of about 12:15 est.

Someone asked him how I exit my trades, most of the trades I exit on the stop losses you see in the current positions graphic. If you want to see where I get stopped out, double click the image below and see where my stops are positioned. Every day I tighten these based on my assessment of the current situation, allowing my profits to run.

I will get another posting up in about 4-5 hours.

Running behind

Will be posting an update later tonight.  Sorry for the inconvenience.

Now Let's Be Honest

OK, here is the question for the day. How many of you, honestly, thought to yourselves, "oh I guess, Blake blew it." or "the streak is over" or "He is insane" when you saw the 8% drawdown in one day? (actually dipped to about 12% during the night). Well I will have you know I was never nervous about all of those positions open at once. I just happened to stay up into the night and just got 4 hours of sleep, purely a coincidence, had nothing to do with my emotional state from trading... never doubted... never... Ok if you believe that send me $19.95 in a self addressed envelope and I will send you a deed to some beach front property in Arizona.

I don't like being in that many positions all at once. It makes me jittery. Thank goodness, once again, that I tend to follow rules. We did get a buy signal on the Gbp/Jpy which goes against the short Usd/Jpy signal. Probably just an indication of a very strong Gbp and a weak Usd, not necessarily a reflection on the Jpy. If you note the other quick postings you will see the other new trades.

I am tightening my stops a little more than I customarily do, primarily because I am tired and we are going into the weekend. I think all of these could still run after a breather but I need a breather too, not just because of trading but life in general.

So here it is, current standings, still soaring. Have a fantastic weekend.

Blake Young
Random Acts of Forex

Adding to the Eur/Usd and taking part of the silver positions off of the table

I am adding half of a normal position for myself on the Eur/Usd.  It is still running.  I have taken part of the silver position out (about 25% of the position) and part of the gold(33% of the position removed).  I felt over leveraged and didn't like the effect on my account nor my sleep patterns.  Over all we have already recovered from a peak of down $100 to up over $200.

 

Happy Trading

Blake Young

Random Acts of Forex

Selling the Usd/Zar

I have been watching the Usd/Zar, the interest payment is great in a sell postion and I believe it has found resitance.  Confirmation of price drop below yesterday's low.  Selling at 6.1226

 

Ups, downs and sideways

Busy day today but I think I am almost caught up. It was a very wild ride especially on the metals. Both gold and silver made good moves but reversed and then came back to center. I am OK with this initial pull back as I feel fairly confident in the metals for a long play (once again including the Aud and commodity related pairs).

The Usd/Cad and the Eur/Usd trades are still running well. I would not be surprised if this new Gbp/Usd trade were to pull back a little but then run up to 1.8220 if not 1.8420 *see chart*

















Current positions are listed below.

Buying with both hands

Barclays has announced that the SEC has approved the sale of the Silver ETF.  What does this mean?  It means every group that tracks it and every purchase of the ETF will require holdings in Silver ~ equals higher demand ~ equals higher price.  I have bought into the silver again sold an additional position on the USD/CAD.  This may take a couple of days to play out on the precious metals so we will keep a loose stop and hold onto this for the next few days and more likely then not through the weekend.

 

Everything is moving, look for price pattern breaks and 2 and 3 year high and low breakouts.

 

Blake Young

Random Acts of Forex

Buying gold, usd/jpy

Big anti dollar break

Going in short the Usd/Jpy and long gold

Short the Eur/Aud

I am going short the Eur/Aud today. Gold is breaking out as I typed this and I think I am going to take a small position long. I want to look at it a little further. If gold stays above $640 I will get in to the trade tonight, or maybe long the Aud/Usd.

Tonight could be a big move for the JPY I am thinking of placing an entry order sell 30 pips below current price on the Usd/Jpy to see if we can get into the trade and ride the strength of the Jpy.

Current positions are listed below. If I get into any of the other trades I will post an update.

Happy Trading.

Cad holding support

The Usd/Cad has not broke the lows yet but I am still short the Usd/Cad expecting a break below. I commented that I shouldn't enter that Usd/Zar trade as it was too closely related to gold and sure enough I was right. I should listen to me instead of make poor trades. Over all we didn't move much today about 1/10th of 1% down for the day with tightened stop losses.

I have been waiting for a reason to get back into the Eur/Usd long, the break above highs for the past 7 months was a good enough reason but I entered in the trade long.

I believe gold and silver are finally shaking off the volatility and are poised for a move. I will be willing to take trades on gold and silver again tomorrow. Expectations of gold moving about $640 for a buy are in my sites.

Usd/Cad below 1.13

If the Usd/Cad can sustain a push below the 1.13 range, maybe 15 -25 pips, I will look to adding to the short position.  Keep your eye on this one.  Watching for a reason to add to the Eur/Usd and still not taking any gold or silver trades for another day or two.

 

Blake Young

Random Acts of Forex

Error in Html

I am not very good at html yet and so when I edited the site, I messed up and it was not updating posts. Luckily not much has happened in the past couple of days. All posts are now shown and the updates and current status are here. Sorry for any inconvenience.

Blake

New position ahead of Euro and Cad announcements

New month, new trades and announcements

My entry order triggered on the Usd/Zar, which as I said when I set the trade that I expected that it could be a troublemsome trade due to the fact the Zar is gold focus and all gold and silver trades are worthless until Wednesday or Thursday. The Usd/Chf gave a signal and seems to be trying to push down through support at about 1.2700. Now because of my delay in getting the blog set up and the numbers run, I got a better price than if I would have entered the trade right at close. If support can be breached here, the next level is down about 250 pips followed by another support about every 200-250 pips. This is a little aggressive as it comes to Fibonacci numbers but as a trending indicator and breaking below a support level, it works. Each Fibonacci breached can be an added entry point or an exit for profit taking.

The European union is announcing current account and trade balance, both expected to be good which should only encourage the chf to continue down. Canada is announcing interest rates which is also expected to move the Usd/Cad down further.













Current positions are listed below. This is the beginning of a new fiscal month So I will count month to date and since 3/22/06 starting tomorrow. Counting through today we are up 121% in 31 days.