Best Trade Setup Last Week
After spending an entire day out with my best home girl (my mom!), I decided to get a head start on trading by first reviewing the trade setups that I missed last week. I know, I know, looking back on could’ve-beens sounds a little weird. But hey, that’s what deliberate practice is all about!
Anyway, a quick look at the comdoll charts showed that AUD/USD was the biggest mover of the week. It dropped more than 400 pips from the 1.1000 area as risk aversion lurked in the markets. Check out the pair’s wicked drop in the chart below:
Had I shorted at the 1.1000 level, which was near the previous week’s high and held on until 1.0600, I would’ve bagged 400 pips in just one week! With a 100-pip stop, that would’ve been a 4:1 return on risk. Imagine if I even added to my position every 100 pips and risked a full 1% each time… That’d be a 10% gain! TEN PERCENT!
Sorry, caps lock key got stuck there for a moment. I think I hit it too hard when I got so excited by that TEN PERCENT GAIN!
Oops, I did it again.
I do hope another nice opportunity like that presents itself again this week. For now, I’m still trying to get in sync with the markets to make sure I’m not on the wrong side of the trade again. If you do spot a possible big winner in the making, keep me posted!
What Moved the Comdolls Last Week?
Happy morning friends! Still reeling from the crazy price action last week? I know I am! Good thing I woke up before brunch today, just in time to write a recap of what moved the comdolls last week!
Just when I was about to get some shuteye before the week started, U.S. President Barrack Obama rocked the airwaves and announced the death of Osama bin Laden, the world’s most wanted terrorist. The fantastic bit of news not only inspired Americans to flood the streets to an impromptu street party, but also cheered the markets on the other side of the globe.
Unfortunately for comdolls, the news also brought confidence in the dollar, which inspired a broad selloff in commodities. As a result, spot gold fell from its record high above the $1,550/oz handle, while crude oil futures slipped from a 31-month high.
The trend continued for most of the week as mixed economic reports started popping up in commodity-related countries. For one, the Reserve Bank of Australia wasn’t hawkish enough in their last statement, saying that the strong Aussie is enough to rein in inflationary pressures for the next few quarters. Heck, even reports on Canada’s purchasing activity spooked the comdoll bulls when the Ivey PMI report plunged from a reading of 57.7 from 73.2 in April.
On Friday the comdolls got a breather when employment reports in the U.S. printed ridiculous figures in favor of a bit of risk rally. Although the unemployment rate rose to 9.0% in April, the big NFP report surprisingly registered 244,000 new workers when the consensus was only at 185,000.
Do you think that the NFP report is a game-changer for the comdolls? I’ve been getting a lot of interesting tips from my last AUD/USD trade, but a few more opinions never hurt anybody, right? Hit me up on Twitter and Facebook for your thoughts!
Oh, and HAPPY MOTHER’S DAY to all the beautiful, loving moms out there!