- Waiting on Sterling and Yen
- Summer doldrums into play
GBP AND JPY - A mostly quiet start to the week and not really all that much to talk about right now. My focus is on those next big breakdowns in GBPUSD and USDJPY that I suspect we will see in the sessions ahead. Cable is begging for fresh declines below 1.2800, while USDJPY doesn't seem to be ready to give up on moving lower just yet. Both of these moves will shake up broader markets and both will generate plenty of headlines when they do. But until then, it's that summer doldrums trade we are so used to seeing in August.
DISCOURAGING - As far as my trades go, NZDUSD was higher on Monday but didn't move up enough to take my short position out at cost. Meanwhile my AUDNZD long was mostly flat and the SPX500 short kept moving against me. The stock market refuses to back down and if the SPX500 starts trying to establish above 2200, I will need to start thinking about reconsidering and taking a loss on this one. As a bear, the most worrying thing about this latest move is that it has been so slow and gradual. Usually, when you get a top, the final move is sharp and intense and we just haven't seen that here.