I got another signal this week, but once again the Stochastics is already above 80. This implies that I shouldn’t enter, as it could mean that this move up won’t last very long. With EUR/USD making “lower highs” on the 4-hour chart, I think I’m better off not taking this trade anyway…
Economic reports were still overshadowed by updates on the euro zone‘s debt situation this week. Even though we saw a bunch of weaker than expected numbers, particularly from Australia and Canada, riskier currencies were still able to enjoy some gains. Heck, USD/CAD is inching towards parity again! What gives?
By the looks of it, traders seem to have gotten over the debt contagion fears as they started chucking out safe-haven currencies in the past couple of days. Concerns about the Irish bailout and the Spanish and Portuguese bond auctions may have dragged higher-yielding assets down during the start of the week, but they were able to rebound as risk appetite improved later on.
I’m a bit bummed out because, just when I jumped in the risk aversion bandwagon, we saw a mid-week reversal! Then again, who knows if these are just huge retracements? It might give me a chance to short the euro at a much better price!
Going back to my system, the HLHB system has been performing suckily (yes, I know that’s not a word) lately, but I’ll have to see what the stats of my HLHB systems REALLY say when I compute them at the end of the year. While I did miss some major moves, I also caught a LOT of good ones earlier this year. In fact, on one trade signal, I managed to bag 600 pips. If you don’t know what I’m talking about, here’s my blog post about that specific trade signal.
Anyway, I can’t wait for the Grammy Awards. Did you guys hear about Michael Jackson? He got nominated! The man’s dead (R.I.P MJ, we all miss you!) and he STILL gets nominations. He’s definitely the Greatest of All Time!
That’s all for this week. Hope you guys enjoy your weekend! Toodles!