Best Trade Setup of the Week: 2011-05-16
Hey friends! Ready for another shoulda-woulda-coulda setup from the comdolls? For the third week in a row, AUD/USD takes the crown for my best comdoll setup of the week! Should I have traded this one instead? *sigh*
AUD/USD continued its uptrend early in the week as the pair was supported by a rising trendline in the 1-hour chart. Then, around the middle of the week the Aussie fell victim to the good ol’ midweek reversal. The pair ended up breaking its trendline support after tipping a high near 1.0900, and fell all the way to the 1.0660 area! Talk about easy money!
This particular setup annoys me more than missing last Friday’s girls’ night out because the setup was supported by not only a bearish divergence, but also an overbought Stochastic signal. If I had shorted at 1.0790 when a strong red candle broke the rising trendline, placed a 50/1/1 STA and closed at 1.0600 near the end of the week, I could’ve gotten a nice 5:1 reward-to-risk trade and a total of 500 solid pips. That’s a weekend’s worth in the Caribbean!
Oh well, at least it’s a new trading week full of more opportunities. I hear that commodities are on the move again? Will this Monday’s downtrend continue for the rest of the week? Don’t hesistate to give me a shoutout on Twitter and Facebook!
What Moved the Comdolls Last Week? 2011-05-18
Ahh, there’s nothing like a nice quiet brunch on a Sunday. To tell you the truth, I haven’t had much time to sit down and relax last week since it was a really busy one, not just for me, but for the comdolls as well!
Just when the commodity currencies seemed poised to make new highs, risk aversion popped its ugly head back in the markets and spurred a safe-haven rally. Even gold lost its shine mid-week when it struggled yet failed to keep its head above the $1500/oz mark.
Uh oh, Big Pippin, I think it’s time to cash in on those bling-bling before it drops in value!
It didn’t help that Australia’s jobs report churned out extremely disappointing results for the month of April. Although their unemployment rate held its ground at 4.9%, their employment change figure came short of the projected 17,600 increase in hiring and instead showed a 22,100 DECREASE in jobs. I’m not so used to seeing Australia dish out heart-breaking figures like that!
Because of that, market participants decided to unwind their riskier holdings and show some love for the safe-havens. This weighed commodity prices down, particularly that of crude oil. Yipee, that means gas prices will be cheaper again! That means more road trips with my best buds, I suppose?
Not until I get a good winning trade. Hah!
My long USD/CAD trade seems to be doing great though and I’m crossing my fingers that it keeps going up. In fact, I might hold to this one a bit longer and even add to my position because one of our Trade of the Week contestants pointed out an inverse head and shoulders formation on USD/CAD’s daily chart. Make sure you cast your votes because it’s readers’ choice after all! I might even take that USD/CAD trade myself!
Speaking of the Loonie, I’ll leave y’all with a corny forex joke I came up with while singing in the shower this morning:
Me: Knock knock.
You: Who’s there?
Me: Black crack.
You: Black crack who?
Me: I’m beautiful in my way ‘coz God makes no mistakes. I’m on a BLACK CRACK, baby, I was born this way!
If you’re not rolling on the floor laughing hysterically, you should update your playlist with some Lady Gaga songs. Seriously. Do it.
I’m kidding of course. See y’all on the other side of the weekend!