I didn’t get a new signal from my HLHB mechanical system this week. But don’t get me wrong, I’m not complaining at all! My short EURUSD trade from last week is still open with almost 300 pips in the bag and still going for more. Yipee!
I closed half of my position at the profit target of 1.3471 to lock in the first 150 pips. And, so far, the 150-pip trailing stop on the remaining half of my position still hasn’t been hit. Looks like the troubles in the European Union are working to my advantage… Hah!
This week was like watching a drama series unfold. It began with ECB President Jean-Claude Trichet objecting to the possible help of the IMF, saying that the euro zone member nations should be responsible for their own fiscal positions. It looks like the ECB believes that running to the IMF would undermine the EU’s authority and reflect negatively on the group.
It did not end there. Like in any good soap opera, a new character got introduced. Who am I talking about? Portugal! Apparently, news broke out that ratings agency Fitch decided to downgrade the country’s sovereign credit rating one notch lower to AA- from AA. So now, the euro zone has two problem kids! Geez Louise, the EU has more family issues than Sandra Bullock and Jesse James. Talk about getting “Blind sided.”
In other news, the Federal Reserve yesterday came out with some pretty bearish statements, causing risk aversion to heighten even more. Fed head Ben Bernanke said showed his concerns once again for the US labor market, indicating that it still remains weak.
Anyway, I’m going to go watch When In Rome later this week. Josh Duhamel is such a cutie! I can’t wait till I get to go to Rome and find my one true love! Plus, with the way things are looking for the euro, my dream wedding might even be cheaper than expected! I’m kidding… or Am I?!? Hah!