I am going t cover my open CAD futures trade at .8867 if we ever get there and then look things over. DRT
Also going to take off 20 EC contracts at 2710. I will leave 10 open. Look for a tail. I would like to reset the shorts in EC if we retest the 2759-61 area. DRT
If you are an aggressive trader (and I do mean aggressive) you could possibly play a long trade out of 2710 EC or 2651 EURUSD. See if this idea fits in with any of your current ideas or methodology. DRT
Again, my methodology tells me to take profit on the CAD futures play around the 8667 area (CD) or the 1303 area USDCAD. These levels could also play a counter trend short trade in the opposite direction, but I will not be doing that. DRT
Another good target on USDCAD is 1320. I usually get out a little early or on a run through my target. DRT
Checking in on the USDJPY. If we break the high today, then 119.10 area. CAUTION HERE: Not sure if you remember, but a few posts ago I was concerned that we took off with out testing the 117.33 area more. I am more inclined to wait for this level to be tested again before entering on a breakout. So the message for me here is.....wait to see if I can get a long entry around 117.33 SPOT. If not, we can set up after a breakout. DRT
As value builds, I think the better entry if you are inclined to trade back against this run is a long around 2642 SPOT, 2696 (EC).
The DXY has depreciated in all but one of the eight mid-term congressional election Q4s in period '74-'02 by an average 3%. '94 the exception, gaining about 1%, but there was a Fed 75bps hike in Nov that year. I saw elsewhere that since '80, all S&P Q4 returned positive when first nine months returns were also single digit positive.
Okay folks. I am going fishing. I have orders in to get completely flat on all open EC and all open CD positions if my above levels are hit. Take care and I will update when I get back. Remeber....Ms. Trichet is babbling about tommorrow and the charts indicate we are in for a big surprise. DRT