This time crime didn’t pay for pirates of the coast of Somalia. After receiving ransom for a release of hijacked tanker, it is reported that five of them drowned in high sees while making a getaway. Apparently their speed boat overturned. I guess the weight of, what, $3M in bills just pulled them down to the bottom. Already there are voices out of Somalia blaming naval surveillance for deaths of pirates, as if they were doing some noble deeds. Very ironic- first they got what they wanted and immediately after what they deserved. I’m bringing this up because my of ties to maritime industry, which makes me follow these matters with both interest and disdain.
On a more mundane subject, Yen has enjoyed a few days of strength. Here is a daily chart of AUD-JPY, but most of JPY pairs have very similar profile.
In my view a large and important bottom is being built. This process will likely take at least few more weeks, if not months, but I’m getting slowly ready for trades on the long side. I don’t think we will see new lows. With that in mind I marked an approximate area where turn around could be expected. I’m sitting on sidelines and watching 1H charts. Over next couple of days I’d like to see hourly charts to start building minor bottoms. Should the sell off accelerate, however, I will start trailing minor highs with buy orders. For now, though, taking it easy and waiting for patterns to emerge, of the type that you can see all over this blog. GBP-JPY short term buys are always in play.
In all honesty I don’t see all that much at this time to get excited about. This is possible exception.
Plan is to sell GBP-CAD at 1.7880 with 200-220 pips objective. This potential trade is challenging, since GBP-CAD is not easy to trade. It moves fast and there is a lot of spikes. On top of that, both currencies have been showing strength, so multiple bounces are possible. In a little broader picture, though, I think GBP will take a little break which should help this trade- if it happens. Due to erratic nature of this cross movements, this position will be monitored on smaller time frame and maybe even cut short.
Just like every Sunday, opening gaps might happen, something for me to pay attention to.
Mike K.
Ties to maritime industry? I work for a company that does interior design for cruis ships. What are yours?
I used to work on, and then manage, fishing boats. I’m still involved to a small degree, but in dfferent (obvious) capacity.
Really? Something like this show “Deadliest catch”?
About 20 years ago I did exactly that, worked on a crab boat.
You did that?? This looks like crazy work! How long did you do that for?
Crabbing? Not very long. Once that boat sank I moved to bigger and better things.
You were on the boat when she sank? In Alaska? This is wild! It must nave been a nightmare! This show documented a few sinkings and it made my skin crawl.
I think these people are nuts. There is nothing normal about that work.
Michelle, nobody died when my boat sank. It wasn’t overly dramatic. Or maybe I just think so now.
B.J., nowadays these guys are normal. You should have seen it 20 years ago. That crowd was certifiable or even certified.
Mike, you are full of surprises. I just sent you an email with some other questions.
Hi Mike. I for one think this crabbing is interesting and adventerous. Wouldn’t mind trying it. Do you know how to find a job like that?
Jason. I will send you email with a few phone numbers to call.
Interesting. Is it really as bad as the show indicates, or are they simply choosing more spicy moments?
All those guys on the show look rather rough. It is difficult to believe any of them would venture into anything as arcane as currency trading. How long have you been trading, Mike?
Andy, it is a hard job in tough environment. Show doesn’t really do a justice.
Had I known there is so much interest in crab fishing, I would have started a blog about it. Heather, I’ve been trading since 1989 and full time since 2001.
Looks like everyone wants to know…”How it came about…”
“How IT came about…”
Isn’t it hillarious, Ollie?
I’m soory about my last remark. It didn’t come out the way I meant it. How does somebody go from a job that is totaly physical to one which presents an absolut cerebral challenge? From one extreme to another with fantastic results. I’m sure more readers would like to know that. Could you please indulge us?
It is a long story. I might devote a post to it later on in the week.
Yesterday I didn’t even know what you guys were talking about. Finally somebody at work explained to me what the “Deadliest catch” was. They say it is the most dangerous job in a world. That’s impressive. And Forex is another risky avnue. Maybe that’s why you are good at it?
Heather, traders come with all backgrounds. I spent 15 years in military and now, 10 years later, I’m what most people call professional money manager. We don’t trade forex but I do it in personal accounts. I met Mike few years ago and we have been in touch since. I like the fact that he started this blog, because he has some great ideas. In all truth he should be charging a membership fee for it. This is as close as you’ll get to looking over the shoulder of good, solid trader, without paying for the privilege. Keep it up, Mike.
You are too kind. We’ll meet again later this year.
I really didn’t mean to offend anybody. My repeated appologies. Alex, what is it that you trade, if not Forex?