Very slow going in early Europe; best we get used to this!

I’m afraid that we may be in for extended quiet periods in the market and its hard to know where the volatility is going to come from, if its not stop-loss driven.

EUR/USD has run out of bearish momentum after 30 pips which is a sad reflection on the market overall. Whatever happened to the good old days, up 100, down 200, up 100, back to where we started! Then start all over again. Sometimes it feels like we’ll never see them again.

No obvious trades staring me in the face at the moment, so best wait until the lights come on again.

  1. Sean, do you trade only FX or other asset classes? I’ve been studying futures trading these days. While my focus is on FX, indices futures may not be a bad diversification if the market environment in FX Spot will stay like this for a longer period.

  2. The daily volatility is like the heart beat of the market. When it was moving up 100 pips then down 200pips, the market was alive, doing exercise, moving, having a healthy diet of free market. Progressively, the market started taking drugs QE/LTRO/OMT etc, and now, the market is not sick, and his pulse is lower and lower in amplitude. If this continues, we might start to have weeks or months when everyday +20 pip down 10 pip is the max volatility. Days will come when a trader will consider himself happy to make one pip!

    Until, finally, all FX rates are fixed by a centrally planned new world government…
    Commodities fixed, stocks nationalized, credit rates controlled. Historians will call the revenge of Lenin.

    This will be the time to migrate to Mars…


  3. Hi Milan, I do have long term bullion positions which I hedge occasionally but basically I’m a sad FX market tragic. I really don’t think I can change my ways at this late stage

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