Monday, July 11, 2011

The Daily Note - Will Your Day Be A 7 or 11?

It's beginning to feel more and more like we're gambling. We're not so much gambling on what we see on the charts but more like what we think the global thinkers will do with the $ Dollar, the IMF chiding and $ Moody ratings. Banks and Politicians continue to mate with each other, but like incest, they create more uncertainty about the healthy birth of a new world order.

Where are we headed changes in theory from day to day. The futures market is beginning to wobble on its own axis threatening to spin out of control. Each day brings on a new challenge and further speculation. So where do we find normalcy? How do we adjust?

Reading the tape becomes more and more imperative rather than betting on it when one sees the seven not too far from getting hit. We must stop presuming how the markets will start, finish or where it will travel within the day. We must not presume that each step will follow the other in the same direction. Because the world is no longer (if it ever was) predictable. So, as traders don't presume it will be one way or another, just let it roll and bet accordingly

Often enough we have started the day on dismal notes and along the way someone from somewhere says: "Hey, it'll be all OK!" to which the markets reply with a rally. So follow the trend as it unfolds, and you'll probably finish the day well, rather than just lucky.

Happy Trading, Living and Dancing

P.S. Apologies to gamblers if I misuse terminology, not a gamer myself, but I'm trying, trying. ;)

The Daily Pick - USDX

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