Fear of Missing Meaningful Moves- FOMMM
I was hooked on the currency markets last night and today. Frankly, it’s a day traders’ haven as EURUSD has been moving 100 pips up and down within a span of 3-4 hours. It’s a lucrative support resistance to be playing with. Going long near 1.3650, and closing the positions at 1.3800 or anywhere between the meat of those trends. I want to go sleep though, and just call it a day. But money and low risk setups are not always this frequent, so I’ll just place my alarm clocks and place my trades.
Went Long EURUSD just now at 1.3710, stops at recent intraday low of 1.3650, target 1.3800
Also went long OPNT pivot point of 44.52, – Bullish looking flag, wide stop at 42, tight stop at 44, targeting a possible new high.
My Technical Homeworks
Here are the bullish long setups I’m liking in the US space. All are just screened using technicals. Awhile ago, I was still waiting for Philippines to sell off , in order to provide a compelling risk reward basis for people like me looking for some extra yields in the market. However, I guess with the way US markets are gyrating with every emotion over any banker or world leaders’ statements, I’ll have to keep my average positions small, and err on the side of conservatism. If I can’t find compelling setups in the Philippines, might as well direct my eyes to scalping currency support levels like a hawk.
Stocks in this list were found via looking at Nasdaq 100 components and Stocktwits 50 Best momentum stocks, or mentioned in Stocktwits streams:
I’m just concentrating my eyes on these particular ones: (25 stocks)
As always, the principle of caveat emptor applies equally to literates and illiterates.
History seems to show that fund managers can get even more emotional than retail investors, but we’ll see if there are some catchup buying. I read in the Inquirer today that Citibank Philippines’ Minda Olonan and Economist Jun Trinidad’s top 5 stock picks are EDC,MPI,ALI,BDO and AGI. We’ll see if there’s some bids on these companies from the price action next coming days. Maybe they could be talking their positions, or adding more exposure. Price action will show us the way.
There’a quite a lot of factors to be bullish about.
Be aware of the context:
1.) Traditional Seasonality – Its generally favorable from here through early January. Long term indicators confirm that seasonality’s working.
2.) Emerging markets are picking up strength – Investors are wearing risk-on hats all over the world, despite very wide volatilities.
Doug Kass wrote quite a nice piece illustrating the current markets:
Fear of return of capital has been replaced with the fear of an inadequate return on capital as fear of the downside has been replaced with fear of missing the upside.
Disclosure: In the Philippines, Only have tiny size of PGOLD 5% at 12.56 (once it broke above the 12.50), 95% still waiting for my cash to be deployed. If I find no setups, oh well. I guess I’ll just go heavily short the dollar through other means.
Most of my FX positions are closed intraday, so no use really trying to disclose these things. I’m just starting to learn US markets, and just have OPNT.
Don’t hate Dr. Jekkyl and Mr. Hyde’s market persona. Embrace it. Adapt to it, and just love it.
By definition, risk must be taken in order to profit in the markets. The key is to manage that risk appropriately, which also means managing your discomfort appropriately. – Doug Kass, How To Survive an Emotion Fueled Market.
– FT (As I end this post, 1.3772 is the EURUSD and OPNT at 45.32. ) 😀
Btw, here’s an interesting data point about Burgers! Mcdonalds versus the Competition. Click the link to understand the data visualization better.