Global Macro Trading Journal

Discussion in 'Journals' started by Daal, Feb 25, 2011.

  1. Daal

    Daal

    EUR tanking on no deal in Greek politics. How come I got rebutted for suggesting Grexit was EUR negative?How come this isn't painfully obvious to anyone trading in the real world?
     
    #4051     May 15, 2012
  2. Sensitive much? "Trading in the real world?" I guess everyone else on this thread is paper trading in their Schwab account.

    It's a still a hung jury on what an actual "exit" will do.

    Right now we've got a Schrodinger's Cat type situation, where Greece is neither in nor out, and nobody knows what the fallout of full follow-through will look like. Maybe the safety mechanisms hold and the periphery verdict remains stable; maybe everything goes to hell; or maybe Greece balks last minute, too early to tell.

    Also, aren't you more of a long-term guy? A downside range breakout that's only a week old seems pretty thin gruel for saying "I called it"...
     
    #4052     May 15, 2012
  3. Daal

    Daal

    You have an great track record for arguing in favor of hopeless viewpoints. I'm glad you kept it intact
     
    #4053     May 15, 2012
  4. Specterx

    Specterx

    It's been going up steadily for 4+ years. No major trendlines or support levels have been broken (using the futures at daily timeframe), there is no bear trend here. A one-month selloff doesn't negate half a decade of rally - in fact I'm more inclined to see it as a buying opportunity, though as indicated I'd be more comfortable if I had a fundamental thesis.

    One could buy 6J here at 1.25 with a stop at 1.22, while if the bull trend continues we can see 1.35+, maybe even 1.4+ this year.
     
    #4054     May 15, 2012
  5. "Your... your brain has the shell on it."

    - Tommy Boy
     
    #4055     May 15, 2012
  6. Using daily charts, the support level at the low of a 6 month trading range (1.28-1.33) was broken decisively earlier this year, the market went 9 handles lower. That is a large move on a daily bars trading timeframe (i.e. weeks to months timeframe), if you were long Yen due to the secular bull market then you would have dropped a little over 10% in 6 weeks, hardly chump change. If you shorted the breakout you made many times your risk.

    As a more general point, trading timeframes are measured in weeks and months, occasionally a year or two, definitely not 4 years+. You are not Warren Buffett and this isn't an investing forum - in fact you yourself cited 'technicals' and I am merely pointing out what they are...a clear medium-term breakout and new downtrend, which has now retraced about half the move in the last month or so.

    Your last sentence is strange - yes, you could do that, but so what? You could also short with a stop at 1.28 and if the downtrend continues we can see 1.19, 1.10, or parity in a year. Neither of these statements by themselves tell us anything about which one is more likely to happen or which is the better trade.
     
    #4056     May 15, 2012
  7. Daal

    Daal

    #4057     May 15, 2012
  8. ammo

    ammo

    #4058     May 15, 2012
  9. #4059     May 15, 2012
  10. Vote in New Democracy or PASOK (or some coalition of the 2) in June and Brussels will throw Athens a bone.
     
    #4060     May 15, 2012