Unfortunately, I was only able to enter about one-fifth of the trade at the beginning of last week because of how little money I had in my trading account. Monday morning I mailed off a check with the plan to complete the trade when the funds cleared, but the money didn't show up in my account until Friday afternoon, by which time the index above had already moved about four per cent.
I spent the weekend trying to decide whether to just jump in all the way despite the strong move last week, or to wait for a retrace. I just went for it. Don't have time to fiddle with stuff these days.
I've received a number of emails guessing about the composition of the chart I posted last week, nobody got it right, though some of you were less wrong than others.
The chart is an (inverted) equal-weight index of the following currency pairings:
NOK/USD, AUD/JPY, CAD/JPY, XAG/USD, XAU/USD
So my trade is long US dollars and the nippy, and short the Norwegian krone, loonie, aussie, and metals. From here I'm looking for about a 10 per cent move on the index. To start with anyway.
Despite not getting the best prices on all the pairs, I am mildly pleased with myself that I shorted gold at 1256.
The high PM Fix was 1261, a buck away from the super significant number of 1262. Maybe we're ready for 666 now. Or it may be that I'm just a sucker for numerology.