Looking for readers who took our clever suggestion to short the euro traders and market mischief makers took out people who had their stops too close to the high. Good market making and specializing!
Traders who took our advice and put their stops 2% above the high are whistling merrily and thumbing their noses at the specialists, as the stop would have been at 153.20.
This is a vivid demonstration of why you put a filter between highs and lows for the placement of stops.
This particular occurrence rather reinforces our “clever” call to short the euro — that is the chase for stops followed immediately by a gap back into the range.
While they were chasing the stops we didn’t feel too clever.