More year end review. Euro- FXE

Posted on Jan 06, 2011 by WHC Bassetti in Letters

No review would be complete without taking a look at our analysis of the euro -- FXE. AT 1 we shorted the euro -- a near psychic trade. We said at the time that a stop 2% over the top should protect the position. The we got happy feet when we saw the power bar at 2 and ran. But immediately thereafter we shorted again at 3. We were spooked again at 4, ran, but immediately got back short. While we were thinking like forex traders we repeatedly told readers to observe the Basing Points and stay short. Of course we were spooked again at 5 bailed and then reestablished the short. We again went sideways where marked on the chart when the exhaustion gap was closed.

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