[Anna-Maria]

Originally Posted by torero »

I see tex is MIA today, busy snipering for teenies? Must be very good if she can find opportunities everyday.

Like Buk mentioned, I don't trade every day torero. In fact it averages out at approx 3 days per week across 3 or 4 repetative instruments on this strat, so not exactly an avalanche of scalping activity.

But when situations set up, I like to step in & pump it. I rarely clip against the near term trend, preferring to run with the flow on the sub hourly charts.

Occasionally I'll step in & fade price, especially when tentative s&r levels are in focus.

This area up here on Cable this morning is one such example. The 30min has printed an inverted hammer & the 1-5m combo highlighting nervous bars at this pop through yesterdays highs. We're leading into more key UK data @ 4.30 EST & the swing players have no doubt pared off up at y'days highs.

That only leaves the sharks & value sniffers lurking this morning, seeking a little each-way activity into the data release. The volumes on our ladder showed good red activity, hence my trigger off these small frame bars.

Same procedure: 70% booked, trail the remainder off a b/e cut. If prices meander down into 4.30, & the trade remains 'live' I'll assess whether to fold or hold. It represents good risk (for me anyway) & is a typical play at hesitant highs/lows.

[Anna-Maria]

Folded remaining stakes on the pop back up off 9650 (out @ 61).

Good UK news & this will spike, slipping my remaining position.

Not worth the risk to hold at these levels. See if anything shapes up post-release.

[torero]

Hi tex, nice to read your insight again. Buk is a funny guy! We got to know him chat room. I just wonder if he really walks around like a circus clown LOL.

thanks, buk. I enjoy hunting for profits LOL. Since this area is new to me, it's interesting to find all instruments show similar patterns.

I'm a bit cautious for now as there are way too many news clips coming out today. I normally follow the charts, but these volatile bars will whip me out of my positions but better to be in sidelines and waters to calm. Curious thing is these news are the cause for these patterns to be resolved... patterns hitting their targets, confirmation of patterns in play, and of course pattern failures. They end the drifting misery so we call continue trading again.

I believe virtually all the major currencies are being hit by news in their respective countries this week no?

[Anna-Maria]

Not nearly good enough! Vulnerable to the blow-off, & the lower top failure on the spike was the trigger for me.

Short-term support at the 650 zone, so a good area to scale out & again, run a b/e stop on remainders to check the post-data flows.

Looking for todays pivot as short end destination (scale a little more out) & maybe compound into the short for a visit to the S1 area.

Anyhow, we'll see what the traffic's like should they decide to thump it back a ways.

I'd prefer to see the back of 650 pretty sharpish to be honest, otherwise this could well just 'range' into the late London action.

[torero]

Looks like this one is not taking the resistance very well and about to coming around the bend with lower high/low on 60min. It's finally rallied to the channel to confirm the reversal? I'll be looking for the next rally to short here. Not sure how in a big way the Fed will make this week on this pair. Since this one is a bit slow, I'll widen my stop a bit to give it room to breathe.

[Anna-Maria]

Originally Posted by torero »

Hi tex, nice to read your insight again. Buk is a funny guy! We got to know him chat room. I just wonder if he really walks around like a circus clown LOL.

I believe virtually all the major currencies are being hit by news in their respective countries this week no?

I guess you'd have needed to have been party to that conversation to appreciate the reasoning behind that blurb.

I think I better decline to comment for safety reasons

Yes, there's quite a bit of news out across the board this week. You certainly need to stay alert when these data prints hit the tape. They can spike & bounce price all over the board if they either disappoint or skew heavily to the + side of consensus.

[pipMonster]

I'm totally confused with the reaction from the UK CPI data print. I would think that with CPI being at a decade high of 3.0, the pound would have rocketed off.

Any ideas or explanations?

[Buk]

If the Bank hadn't pre-empted inflation concerns as they did last week Jack by raising rates, then today's CPI print would have spiked & run Cable up......thus confirming the Bank were either behind the curve, or really needed to step on the gas & raise at the next meeting.......

this was obviously one of their primary considerations when they met last week, & therefore much of the post meeting activity was "priced in"....

traders were already positioned for a jump in Cable & have no doubt booked some profits up here in anticipation of a reaction to this weeks data......

that's not to say they won't continue to buy the pullbacks, but for now (in the short-term) the fast frame players will cash in on any interim volatility........which prompted Anna's crew to bat it back this morning........