Wednesday, September 25, 2013

Feeling Seasick Yet? Choppy Wednesday Trade

Wednesday was a “woulda, coulda, shoulda” type of day, where trading resembled a container ship getting battered around while crossing the Pacific Ocean in a typhoon.  Where traders quipped, I would have done that trade if ..  I should have done that trade because my target was .. And I could have done that trade but ..  As is so often the answer There s no such thing as coulda, shoulda, or woulda.  If you shoulda and coulda, you woulda done it.  Ha! So, what was going on and why?  To sum it up in a single sentence: End of quarter position adjusting.  It is common for the last week of a quarter to be more reflective of what is being adjusted – the long side or the short side?  Just follow the choppy sequence – Treasuries up, U.S. Dollar down, Gold up, equities down.  There is a connectedness to it all as well – When treasury prices move higher, yields go lower, when yields move lower it will take the U.S. Dollar with it – why; because the yield on the dollar is si

http://www.indicatorwarehouse.com/96712/feeling-seasick-yet-choppy-wednesday-trade/

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