Whipsaw Galore

We’re increasingly seeing quite a bit of whipsaw all across the board, not just in equities (where it’s actually mild) but particularly in the currencies, the bonds, as well as precious metals. Although I’m certain the MSM is pointing at all sorts of purported reason it’s just what you get once a rally is tiring after an extended run. 

Market participants start getting bored, which in turn activates the mental masturbation regions of their cerebral frontal lobes. And before you know it everyone’s running in circles with their hair on fire.

Late stage rallies usually get more volatile and as a market cycle conscious trader this means you add a bit of a extra buffer to your trailing stops.

Which unfortunately doesn’t always help – case in point is my E-Mini campaign which managed to scrap my trail almost to the tick, leaving me with ~1.5R in profits. Someone alert the media…

And that only leaves me with the EUR/USD campaign which made it to the 1.5R MFE mark but my rule do not permit me to advance my stop until 2R has been breached.

The XX-plus-size lady hasn’t sung yet however and I did expect a bit of monkey business when taking this entry. We only need a look at the daily chart to remind ourselves what a clusterf…k the EUR has been over the past few weeks/months.

The one setup on the horizon I covet right now is a long breach in gold > the GC 1330 mark. That was one nasty shake out and a counter response would not be unusual. If that happens my stop goes a few ticks < 1322 to weather out another retest.

If stopped out things start getting more interesting near 1314 but even there we would need to see a bit of price normalization.

Alright that’s all I got for now. Although being a short one on the trading front this was another rough week for me and I am looking forward to some gym time and much needed R&R.