It was a big week in world markets with a few notable developments as follows:
The European Central Bank (ECB) signaled their intention to create money out of nowhere and buy large numbers of EUR denominated bonds, taking a page from the US Federal Reserve and igniting a huge rally in EUR/USD. As a result, US Stocks moved out to new 4+ year highs with the S&P 500 moving out to levels not seen since 2007. Also, my favorite stock, Apple Computer quietly moved out to a new all-time high in anticipation of a release of the iPhone 5 expected this coming Wednesday September 12th.
Even more interesting is that this happened in the face of a very seasonally weak period for the stock market. It reinforces the point that the "Smart Money" was widely expecting a correcting coming into September and as a result loaded up on put contracts and long volatility which typically spikes in the face of big market sell-offs. When everyone is expecting a sell-off, we don't get one, and instead the shorts and VIX bulls got slammed with volatility plunging throught the week.
While my Equity Portfolios benefited from this, my Forex accounts did not respond as well and the only account that was up for the week was Atinalla #3. Breakout related systems took some trades in the breakout direction, but were shaken out on premature exits. Fortunately, most accounts went out long EUR/USD with some solid unrealized gains as shown in the screen shot on the left. We also took some gains in long AUD/USD trades in Atipaq Full Portfolio, but continue to be punished by our Atipaq USD/CHF instance.
Overall, Forex continues to underperform for me as an asset class. But generally my assets continue to grow and I have my hands full with career and my son's college selection process. My time will come with Forex, so stick with my on my journey and have a great week.
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