Baby Steps

AN OBVIOUS ADJUSTMENT - Not all that surprising to see the type of price action we saw on Monday. The market was going to need to consolidate after the intensity of Friday and this was to be expected. The price action moved back out of my favor with respect to Cable and GOLD, though Cable held up relatively well considering where it's been. GOLD setbacks were more notable, but again, not surprising and what happens over the coming sessions will be more important. The consolidation could also be a good thing if it lets us take advantage and get back into the USDJPY short that did so well for us after the Friday drop. I will be careful about where, when and if I get back into the USDJPY short, but will definitely be looking to do so. Back to the Cable position, we're at a very important point here.

cartoon july 24

SLOWLY IT TURNS - Certainly the point we've reached is critical for my long exposure, but it's also critical with respect to the outlook going forward and whether or not the Pound wants to be serious about getting back to those levels seen in April and then extending beyond there, up towards 1.5000. I continue to believe this to be the way Cable should be headed and I see a scenario where soft Dollar policy and safe haven bids can benefit the Pound tremendously. But baby steps is what it's about and in order for the Pound to reassert and reestablish itself as an outperformer in 2018, we need to start seeing small positives. So some economic data that looks better than last week's CPI and retail sales, and then some productive updates relating to Brexit, which just went through a stormy period. If we can get a little momentum back the other way, it's definitely positioned to build quickly. So let's see.

One small reversal day and a few positive developments and all of a sudden, the picture is entirely different. #thisismarkets

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