One of the reasons why I entertained the mere notion of an E-Mini long campaign over three weeks ago was that, while market momentum certainly appeared to be maturing, there clearly was plenty of remaining potential for a continuation of the advance. Or in other words, don’t ever trade against a rally just because in your infinite wisdom you have come to believe that it has gone far enough. Lacking any clues to the contrary always stick with the ongoing trend.
It’s that time of the month again and that means blood spills all over the place and rapid changes of emotions for no apparent reason. Of course I’m talking about a Fed announcement day which is the financial menstrual cycle determining the fertility of your bond holdings and thus implicitly the value of the remaining currency in your pockets. Not wanting to get pregnant ever again after one too many abortions the Fed chose a multi-level regiment of birth control measures in 2008 and then proceeded on a financial partying spree, with apparently no end in sight.
Things continue to progress nicely for us on the trading front and I decided to not push my luck by entering any additional campaigns today. After all correlation risk is significant in this brave QE world as currency driven moves usually affect symbols across the board. Besides everyone and their poodle seem to be bullish right now, and to once more quote the great Mark Twain: “Whenever you find yourself on the side of the majority, it is time to pause and reflect.”
The governor of the Central Bank of Iran apparently announced that his country will stop using the US dollar in its financial and foreign exchange reports for the new fiscal year beginning in March. He also hinted strongly that he may opt for the Euro when releasing its key economic reports in the future. Excellent choice sir! Detach yourself from the world’s firmly established reserve currency and instead shift to the one which has been causing nothing but economic turmoil across the region since its very inception. Would you like a side order with economic sanctions with that?