Another strange story of unauthorized trading for a large commercial institution, this time from London. PVM Oil Associates announced that price spike, which pushed price of oil to the highest level this year on Tuesday, was caused by extremely large trade by one of their brokers. Details are a little sketchy, but it appears that 8000-9000 contracts were bought in a single trade, an exceptional size. Price responded by jumping as high as $73.50 per barrel, before falling hard.
PVM disclosed a loss of about $10 Million, small amount as measured by standards of other recent unauthorized trading, rip off’s, scams and swindles. An unnamed firm employee was branded “rogue”, but no more details were released. So, the whole thing could have been incidental, not intentional. Nobody talks about prosecution, at least not yet, so why even bother with bringing it up? Possibly much bigger losses hide behind and will be disclosed a little later. This is only to soften the public before real news hit the wires.
It has been relatively slow day in Forex trading, rather typical around the 4th of July. No active trading for me, but I reviewed the few remaining long term trades, including the much talked about GBP-CHF trade. Half of it was closed last week, today I exited the balance of the position.
I still think that long term is up and will be looking for other entries upon my return. Right now I simply don’t want to worry about it.
Couple of weeks ago another possible trade with Pound pair was suggested. It was a buy in GBP-AUD.
So far price remained below the entry level, but I think the idea is still valid. Buy order remains live at 2.0940 with 1000 pips objective.
I’ll be gone for the next three weeks. Don’t plan to trade during this period. Time to relax, enjoy the sun and watch Tour de France. I can be reached through email, which I’ll check every 2-3 days.
Wish everybody great trading results!
Mike K.
[...] Original post by fxmadness.com [...]
[...] Original post by fxmadness.com [...]
Have great time and bring some good tips back!
Vacation? Sounds great! Enjoy!
Thank you!
Enjoy the time off Mike, seeing those crazy Alps climbs in person sounds very cool!
Nice sounding trip. Have fun!
Few weeks in Europe in summer is certainly great. You might not want to come back.
I myself have been gone for a few days and didn’t read your update. You must expect collapse in gbp/chf if you closed your trade. At any rate, enjoy vacation!
Hope your vacation is going great and having tons of fun. Would it be possible for your to take a look at Yen charts and post some thoughts, especially about gbp-jpy? This has been severe drop. Much appreciated.
Are you following the Tour in person? Did I understand it correctly?
Nice interesting and useful information in graphical charts Thank you so much…
Thank you for good wishes.
G.R.- I don’t follow the markets much, but GBP-JPY could be a decent buy here (150 or so) stop 146.5, target 157.
B.J.- no yet, for now I’m baking in the sun farther south but watch it live every day. I will catch couple of stages in person before my return.
Mark- I think it will be. Plan is to catch the finish of stage 15 in Verbier, which ends on cat. 1 climb, and then I want to park myself on the Pass of Grand-Saint-Bernard the next stage, which I think is the highest point of this year’s tour.
Mont Ventoux could prove to be more important, but that’s the day I’m arriving home.
This was a great tid bit about gbp-jpy. I’m not waiting around for 157. Just got out with about 380 pips. Thanks!
I didn’t follow the tour last couple of years, but now with Armstrong back I pay attention. Think that your choice of venue on the Pass of Grand-Saint-Bernard could actually be the the key to the whole race. Being there sounds just awesome!
Hi,
Just found this website few days ago and read a lot of the posts. Do these charts get really posted BEFORE trades happen? If so, you are doing great job! Hope you resume posting soon!
bigFX- I’m a reader of this blog, for some time now. Most of these trades are posted before they happen, not all but most. Pretty good reading. It seems Mike will be back from vacation in about a week.
So, did you make it to Verbier? I just watched on TV. Man, it looked like a place to be today. Great race, weather, crowds. WOW!