Wow!
After today's action it bears repeating twice.
The dollar continued its rampage. It appears that every currency fund manager finally decided there isn't going to be any reprieve in the dollar's strength, so they all decided to act as one in buying the dollar. Watching all the currencies slide in unison, it gave you the impression of a waterfall.
The potential “Turtle Trade” entry mentioned yesterday, selling the Usd/Jpy @ 107.59 --- got hit today and the market plummeted nearly 200 pips further. As you can imagine, on a day where the dollar was king versus most major currencies, with only the Yen gaining on it--- the yen REALLY dominated all of the other currencies in their respective crosses.
The Gbp/Jpy really fell! At one point it was 550 pips lower than the yesterday.
The FirstStrike shorts: Eur/Usd and Gbp/Jpy are really performing well in this environment.
This week's current FirstStrike entries:
- Eur/Usd: Short @ 1.4584, stop 1.4644. Trade in progress.
- Gbp/Jpy: Short @ 194.93, stop 195.83. Trade in progress.
Tomorrow we will be exiting the FirstStrike trades. New equity highs again today!
Over the past months many have wondered as to why I've included the Gbp/Jpy in the 5 pairs I follow. It has definitely had its strings of losers. This week's action is an example of that why. When the Gbp/Jpy trends it takes few prisoners.
It is possible that we may get some OneNightStand trades Friday, but I would prefer not to. After all this bloodletting, there may not be that much potential left to be extracted. But, as usual, I will place the orders and will see what develops.
Current equity is $1,106.75.
Joel Rensink
www.infiniteyield.com
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