- Recall I was looking at a weekly SHS top in EDM2 with NL at 99.295.
- Sold EDM2 @ 99.18, but scratched this when my patience ran out.
- Coordinated central bank liquidity swap provision (cost reduced and period extended to 2013) today has totally crushed the technical merits of this trade. Last at 99.355 > NL.
- Had expected trade to perform on basis of credit spread widening, not direct rate rises. The central banks' action was designed and has probably eased the credit squeeze, at least temporarily.
- Of all the charts I have presented here recently, this is the only one where the outlook has been changed sufficiently by the 2 unexpected events today ie China RRR cut and the above liquidity swaps. The other ideas (sell EUR/USD, sell Corn), are still valid.
- An otherwise very respectable first month at Saxo destroyed by price action tonight. Stopped out of all Risk Off trades to lock in a small positive for the month only. Frustrating, because looking at the charts, I know that I will probably still want to put on these same trades (apart from selling EDM2) when the markets calm down from this excitement.
- No change in EU fundamental issues from this CB action.
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