Painful Ping Pong

I’m not exactly enjoying the current market phase and most likely neither are you. The painful ping pong we are forced to endure for the past few sessions is to some degree courtesy of the Dollar needing to correct. However there’s an apparent lack of sellers since Draghi’s recent jawboning has confirmed the perception of the ECB as remaining dovish. So I guess we’ll gyrate around sideways for a while.

Just looking at the action of the past week is making me nauseous – clearly this is not a good time to be trading Forex. So I suggest we don’t force the issue and wait until this thing plays out. The Santa Rally is nigh – we can be patient and we all have been through worse.

Similar situation on the equities side and I would suggest the same here. I did propose an experimental inside day period entry on the spoos last Friday and that blew up in our face. I did take a short (as I’m still long) but have little appetite for adding positions here (13R is enough – even for this manic market megalomaniac).

Update on natgas – grabbed 1/2R here last week and we’re off to the races. That’s quite a jump higher and it’s why I only recommended half a unit here – no wonder we call it the widow maker. I’m not going to touch this campaign until it either banks me 2R or my stop at break/even is being touched. If she really picks up the pace I may extend my target – I’ll keep you posted.

I have two juicy setups waiting in the bullpen but need to keep those for my intrepid subs:

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Cheers,