After weeks of false alarms, this week started out promising because I received my first crossover as early as Monday. So there I was, as excited as a little girl on Christmas morning to finally get valid signals from my system.
But unfortunately, Stochastic ruined the party as it was already below 20, in the oversold territory. Argh! Remember, my system’s rules don’t allow me to buy or sell when Stochastic is already in overbought or oversold territory.
I received my second cue to take action yesterday. But just like Monday, Stochastic prevented me from jumping in as it was signaling overbuying already.
But I have to admit, I was itching for my system to get rolling again.Then again, considering how crazy this week was, maybe it’s a good thing that I didn’t get triggered!
We saw as much action on the markets this week as Las Vegas did with my celebrity look-alike Kim Kardashian’s birthday bash. That reminds me, happy birthday girl! Unlike her overly-publicized party though, China’s 0.25% rate increase came as a total surprise. I know this because I got burned on my long GBP/USD trade. Boo hoo!
The PBOC’s move away from an accommodative policy sent fireworks flying in the market as it sparked risk aversion. As Forex Gump mentioned in his blog, investors scrambled for the “safe haven” currencies on fears that global recovery would slow.
It was starting to look as if risk aversion was gonna take over… and then the dollar bulls broke another nail as it lost all of its gains on Wednesday! Talk about a good date going bad! The culprit this time (or should I say once again?) was more speculation about the Fed and its quantitative easing programs. Not to mention, we also saw some good corporate earnings reports which helped boost risk appetite.
Now, the markets are all over the place like my hair in the morning. Oops, TMI!
Anyhoo, can’t wait to get off work and enjoy my weekend. Hopefully I can finally catch that Social Network movie! I have a friend who looks just like Mark Z and I can’t wait to tease him about it. Hee hee.
That’s all for now you guys. May y’all have great weekend!
Maybe next week we’ll have better luck. At least I hope so!
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