Market Update : The first three days of trading this week have been a wild ride. For those new to Forex, please note that things are not always this volatile and our trading is not generally so infrequent. As I mentioned in Tuesday's Live Trading Session, the fundamental analysis of today is mainly about economic shortcomings rather than good news. The EUR rally today was in part due to a positive response in the Portuguese bond auction, but the news looks more like an excuse to clear out stops on shorts. There were simply too many fake tops on 5- and 15-min charts, luring traders short, for the whole event to have been much more than a trap. Our suspicion will be confirmed if the EUR is sold aggressively in coming days. In any event, we are glad to have not taken the bait, but in looking for a short we also did not consider longs. The main reason we did not look long is that these pairs traded at range tops as the European session came to a close. It was not until then that the sudden breakouts came. We are hopeful of fewer games and more clear opportunities in the final two days of the week, but remain prepared for any conditions. We hope to see you in our Live Trading Session in 11 hours.
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