All that glitters …

Is probably Gold. It continues to soar to new highs. Contrary to trading the trend I have short term out of the money puts on Gold. Initial short futures position I put on at 1225 lost Money and I was forced to covered at 1229 as Gold broke to new highs (breaking through resistance levels). I continue to carry put options on Gold, but from the looks of things looks like trade was a dude. Options carry the extra risk of time ! If put options work out, great but I am not taking on an outright short position until I see trend reversing and my out of the money put options come into the money. If they do at all, from the looks of things I think I was wrong on trade.

Besides my longs on Hang Seng Futures, I remain neutral on Equity front. I just do not like the technicals at this point. Sometimes the best trades are the ones not traded.

By Andrew Shawn – Recursive Investments in Global Financial Markets

Hang Seng / Forex GPBAUD

Hang Seng shows technicals of a pending selloff. Tested the waters by putting on a small short position at the 22450 level. Will increase if initial trade proves profitable.

GBPAUD

Pound continues to sell off but I continue to perceive a bullish turn. Fractal shows Mirror image formation ABCD | A’B'C’D’
With D’ at 1.7300. Will begin buying heavily at the 1.7350 levels.

By Andrew Shawn – Recursive Investments in Global Financial Markets