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The SNB has managed to hold the Euro above 1.2000 Swiss Franc, some German data came better than expected (Actually it was the industrial production numbers but it sounds better when I casually throw it as some German data) and the markets were off to the races. Assets everywhere went up as the risk off trade was turned to full on risk on trades by investors. This probably reflects more a situation where investors are being forced to take risks because of the fall of safe havens like Swiss Franc and the Japanese Yen than any inherent belief in the assets that went up in particular or in the world economy in general.
The child like faith of the US market participants in the politicians really touches me. The markets have gone up even as everybody awaits Obama's JOB speech with bated breath. Given his track record with the QEs and our knowledge of politicians abilities from our own experience with them, it can be assumed that any schemes announced will be-- to put it euphemistically--- not an unqualified success. But announcements can have a temporary positive effect on the markets and that is all that matters I guess.
Other then the child like faith of the US market participants, a lot of other things touch me too. Like when the market decides to move in the direction of my trade and make me a lot of money for one. Like when my peers ask me for my opinion on the markets for another. (I don't have one, but it still touches me to know that somebody thinks that I have). A few drinks of good single malt with excellent company is also another thing that comes to mind when I think of all the things that touch me. Now that I think about it, there are a lot of other things that touch me but this might not be the right forum to mention it.
What I should however, mention before I sign off, is that currently I am flat in the markets. I have two trades to do today. One is that I will sell and go short if Nifty trades below 5046. The other is that I will buy and go long if Nifty trades above 5150. Nothing else to do other than wait for one of them to trigger.
Hi MB..just curious if a trend follower is an ed seykota would you consider yourself a trend follower or a swing trader? or is it two diff words describing the same thing? cheers...
ReplyDeleteHi Wayne, I am a system trader and both my systems are trend following. Both are always in the market. I am equal weighted on both and therefore when both are in the same direction then I am either long or short. However, if both are in different modes then I have a NIL position. This therefore gives the illusion that I am swing trading.
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