Friday, March 16, 2007

Japanese Yen : Symmetrical Triangle



Above is a daily chart of the Japanese Yen. Notice the symmetrical triangle that is developing right now. Next week if the Yen breaks out of this formation to the upside, I think we might see an explosive move which would cause our stock market to tumble. Keep your seat belts on guys, it's going to be a bumpy ride!

7 comments:

miamirenter said...

have you added to your shorts..i would wait till next week.

Kevin said...

No reason to add here...I'm already short...I need to save some bullets just in case the market rallies so I can short more.

Peter said...

Kevin, I understand that you use QID to short, or some of the other inverses that are available. It has come to my attention that due to their constructions, some of these inverses are better than others for a given time horizon. Can you verify for me that they deliver double (or inverse double) the *daily* move and not the *long* term trend. So, for example, buying the QID in an IRA for the long term as a bearish hedge (or a bearish bet) may not deliver the expected results. The PSQ may end up
delivering a better long term return than the QID in a prolonged bear market. Can you verify this is true?

dps said...

More good stuff. My own focus on TA is sometimes too narrow and does not account for currencies, etc...thanks.

Kevin said...

Hi Peter,

I can't verify what you are asking me as far as the QID's affect on an IRA over the long term. I use the QID for short term trading and I know they move twice as much as the Q's. For example, today QQQQ was down .06 while the QID was up 12.

dps said...

Kevin,

I am admitting ignorance. I had never heard of the QID before Peter mentioned them. I have now done a little research.

I know this sounds really stupid - but is the an additional fee for this..?)

Do I just buy QID (or QLD if I am going long?).

Why don't you use them for longer term trades - for instance in a defined bear or bull market?

What's the downside?

Sorry to barrage you - keep your answers short, I'll figure it out ;-)

Thanks!

Dave

kk said...

Hi Kevin,

I wonder if you give us the link to some great FX blogs. Thanks a lot!

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