Friday, May 07, 2010

MLR Updates & Futures

I've mentioned this magazine before, it's free and there's an e-version available. The mag has a whole new look and several of this month's articles provide compelling introspectives on viewing gold as a currency (cover article) and the intricacies of HFT (high frequency trading) which now accounts for over 60% of daily trading volume but is only carried out by 2% of trading firms. HFT trades generally have a duration of less than a second but generate effectively no-risk big returns. After you read the article you'll see how simple it is. The Futures site also has an e-based free I-Trade show that typically delivers some high quality presentations.

I've been on the road for a couple days and, as usual, as soon I get away from my computer the market crashes . . which is one reason I seldom take time off. So far I'm batting 5 for 5 for the past 2 years.
Everybody's talking about equities . . buy of the decade type of stuff . . so I'll just run through the current situation on the currency front. The MLR Rotator has UUP in the top slot by a wide margin although it lost .11 today. Just for comparison sake I've included views of the FXC, FXY, BZF and FXE. The Euro's really been feeling some pain lately as a result of the whole Greece, Spain, Portugal debt cloud while BZF has fallen through the lower LR30 channel band but looks technically poised to recover from oversold conditions.

The currency that really has my attention is the FXC. Back on April 8th we exited our Long FXC position at 99.38 based on our 1/3 trailing ATR stop. That turned out to be a great exit . . too bad they all don't turn out that well.
Thursday's FXC plunge below 93.00 was a whopper of a buying opportunity which I was blissfully ignorant of as I played a glorious round of golf with my wife on our anniversary (I'll always remember that one). On the weekly chart (not shown) the FXC is now sitting dead on the lower LR30 channel band, which remains upslope. FXC has been riding that channel since 7/09, so there's quite a bit of history there from when FXC was at $ 91.
Canada's got a lot going for it in terms of economics and geo-politics IMHO so I'll be monitoring this one closely. Another intraday plunge on the 60 minute bars and I'm in.

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