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Monthly Archives: September 2014

On September 8th at about 8:30pm Singapore time, I noticed a pattern emerging in my ichimoku and stochastics; the AUDUSD was starting to turn down on the MA on the 15M chart earlier at 5pm and then it also cut down on the MA for the 1H chart at about 8:30pm.

This tells me that a short term confirmed short trade in the AUDUSD was emerging.  So I short the AUDUSD at 0.9330 and carried the trade till this morning and decided to square off the trade at about 11am at 0.9170 for a whopping trading profit of 160bps.

This is a classical good technical trade.

I decided to short the GBPUSD after the ECB rate decision at 1.6440 to try and compound the move down for the European economies.

Just squared the trade at 1.6400 for a trading profit of 40bps.

So much talk leading up to today’s ECB rate decision and press conference.  I decided to to take a chance, it’s pure gut feel, I bought a put option for one day expiring tomorrow Sept 5 with a premium of 44bps, strike at 1.3150 and breakeven at 1.3106.

What a surprise!

The ECB announced cuts on the main interest rate and also went negative on the deposit rate, sending the Euro crashing, I just squared off the trade at 1.3026 and was happy with a 80bps profit.

This is the trade all of us have been waiting for!