Just when I thought I had another chance to ride the dollar’s rally with my HLHB system, my 30-pip filter becomes a party pooper!
Don’t worry, I’m calmer now than I was last week thanks to yoga! I think I told you guys on Twitter that I was going to try it. You know what, I can already feel it doing wonders for my temperament!
I was so giddy when I saw that there was a crossover on Wednesday. You can’t imagine how bummed out I was when I realized that I didn’t have a valid trade because of my 30-pip filter and Stochastic was already flirting with the oversold mark. Gosh!
But as I said last week, I just have to be patient. Perhaps a few more yoga classes and I’ll be able to find my Zen. Who knows, I could end up thanking my filters! Because to be honest, I don’t know exactly WHY the dollar gained against most of its major counterparts this week! My best guess is it is the combination of profit-taking and a slight case of risk aversion.
Apparently, sovereign debt fears have come to haunt euro zone again. Earlier this week, Portugal’s bond auction was a major flop, causing bond yield prices in the region to skyrocket. I’m no expert in “bonds” and “yield” but I do know that higher yields reflect low investor confidence! (Thank you School of Pipsology!)
There are also rumors going around that some Fed members will drop their “extended period of low rates” talk. I know, I know, it’s just market gossip… but rumor or not, if it affects the market, then I must pay attention to it!