Paying Attention Pays Off

Early Thursday morning I announced the following: “We are about to see a large move on the forex and futures front. Equities are simply the tail being wagged by a big (and currently snarling) dog. Time to pay attention – summer or not – these are conditions in which to bank some coin.”

I don’t think many heeded my advice – at least judging by what I’m seeing in the comment section. Only problem is that big moves happen when we least expect it and the current drive lower one could turn into something bigger. Given that we are approaching weekly support I am going to take half off the table and leave the remainder in the run for a potential low vol summer dip lower.

The 30-year bonds are another recent example. That thing had long squeeze written all over it and I grabbed a small position because I was already holding ZN since near the floor. It’s paying off already and I’m taking partial profits as it’s approaching an old NLBL. The rest I’m holding for a continued run higher with a trail a respectable distance away.

And here’s the ZN – I doubt anyone followed me into that one near the lows. It’s summer after all – and the moon cycle wasn’t perfectly aligned – plus you know – Putin. Still, it has paid off very handsomely since and I just took partial profits here as well. I’m sure it’ll retest the 100-day SMA in the coming days but to me this has the potential of turning into a runner.

Speaking of runners – EUR/CAD was a trend trade candidate a week ago. I mused to my subs that nobody in their right mind would want to take it long near the upper BB and that’s exactly why I converted an initial short term campaign into a daily one. It’s been one sweet run already and it has decent odds to make it all the way.

Moral of the story: We can discuss the academic ins and outs of trading until the cows come home but the one and only thing that matters in the end is your ability to pull the trigger when a promising campaign is staring you in the face. Of course not all of my entries pan out – but the ones which do (my ratio is about 50/50) usually make up for the losers and then some. And that’s all there is to it, folks. Cut your losers short and let your winners run.

Happy Monday by the way – let’s see if we’ll see a bit of participation while Skynard is taking a well deserved week off.

The future is now – so don’t bring a knife to a raygun fight. If you are interested in becoming a Zero subscriber then don’t waste time and sign up here. A Zero subscription comes with full access to all Gold posts, so you actually get double the bang for your buck.

Cheers,