Monday, January 12, 2009

Turbulence - Beware! -IFCN WK 58

The markets have been in an amazing type of tumult.  In aviation, it is called turbulence.

Substantial profits have been possible from trading breakout methods recently, but many traders who could be profiting have accomplished little because of the confusing nature of the moves in forex and other major markets.

Last week, the Euro was especially weak, while the Sterling was exceptionally strong.  Normally the two majors tend to rise or fall together versus the dollar.  When veteran traders are confronted with strong anomalies like that, it can give them pause..., and cause them to stand aside.

(Recap is in progress-  Really!  Please check back ----)

Joel Rensink

IFCN Challenge

1 comment:

The Archiphage said...

It was interesting to see FSP catch a short in Euro and a long in Cable last week. I fully expected to get stopped out on one or both positions, but I was certainly happy to book profits on both. It's great to be using a system that let's us profit from things that *shouldn't* be happening. There's definitely been a lot of action in that category recently! This week the two pairs seem to be resuming their normal correlation. Time will tell...