IN AND OUTS - In yesterday's piece I talked about to new trades. Since then I picked up another and closed out two of the three. I exited my long oil trade on Wednesday for a nice little profit. I had said the trade was purely short-term technical and a sizable bounce in the North American session was enough to make me happy. If we drop off again to fresh lows and towards the 2011 base, I will happily consider jumping in again. But that's all for now on that front. I also picked up some GOLD on Wednesday following the sharp drop to another 4 year low towards 1100. Here again, the market presented a highly compelling short-term technical set-up, with intraday readings so well overextended and the risk for some form of a bounce looking good. The trade was a quick in and out for a nice profit and it was nice to see the follow through.
THE BUY AND HOLD - Of course the other trade taken was EURCHF and I plan on holding this one for a while. I have talked at length about EURCHF over the past several months, and with the market finally breaking to a fresh yearly low, within's a stone's throw away from the all-important 1.2000 SNB barrier, the timing made sense to start buying. I say start buying because I will be prepared to buy another half should we dip below 1.2000. But if the SNB holds true to its word, we should see some form of a response sooner than later. And this response should open quite a large upside move. So let's wait and see. My only other exposure at the moment is an out of the money SPX short. This trade has been more than frustrating with the market failing to back off after rallying over 200 points in a matter of days and breaking to yet another record high. We will need to a break back below 2000 to encourage reversal prospects. Anyway, that's all for now.