Monday's trading recouped all the losses from Friday. Essentially, the last two days of trading didn't exist for the overnight holders. The Russell 2000 has the best chance for a reversal pivot point towards an uptrend. The Nasdaq Composite has the weakest chance because it had the worst two day performance of the major averages and was recovering from a few components reporting disappointing earnings today. AMZN, YHOO, and GOOG have yet to report so they will be a tell for this average.
The FED meeting starts tomorrow and their interest rate decision is expected to be made around 2:15p EST on Wednesday. I'm not sure if its stubbornness or ticker sense since my 875 share position in FXP has returned to its original purchase point. It was somewhat ominous that my losses for January total 8.88%. I'm not sure if that's a Harry Potter reference but it truly sucks.
Earlier this morning our FXP was trading around 97 in the opening fifteen minutes. As a trader, I could have easily taken the 6 points and said thank you. Unfortunately for the second time in as many weeks, easy money slipped away as by the time I looked again a few hours later it was almost six points lower.
It's not a good position when you are stuck and have to depend on the Fed to save you again, and hope they don't change rates in two days. Lots of media chatter saying they'll cut rates another half point and that could truly be devastating to my position. A few people have suggested I cover and take the near scratch. Unfortunately, my stubbornness won't hear it.
Today, agriculture was up, stocks like POT, MOS, and TNH. MOS is up about 20 points or 15% in 3 days. Guess what they say about buying a stock that returns to the 50 day average with an 8% stop and still has a solid uptrend is a worthwhile risk/reward ratio. Too bad, I missed it.
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