Thursday, September 20, 2007

The delicate matter of the loonie

It's official. I never thought I'd live to see it. The last time it happend was when I was a kid and Pierre was the Prime Minister. The dollar was at par with the USD today just after 2pm.

Last night I noticed the USD weakening against the loonie, while I was starring at the chart trying to make my trading system make sense . And again tonight, the loonie is kickin' ass. As I write this, I am short the USDCAD. It's sitting at 0.9996 right now. I figure, once the slide momentun starts, look out below baby.

My system is working well with Forex. I find that charts easier on the eyes than stocks. I am really toying with the idea of doing most of my trading in Forex, and just dabbling in the stock market. The participation in Forex is unbelievably huge, it's $2.50 a trade, no daytrading rules either, and 50:1 leverage.
A chart of the USDCAD. The yellow line at the bottom is PAR. As usual, the fourth good bounce off the support line broke. Now the PAR line should haold as short term resistance. We shall see what the big boys do with this in the AM, look at this mornings slide on the left side of the chart. I'm using risk management (stops) to try to follow it down to the mid 90's. Time will tell.

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