Here is a quick run-down on some of the markets we are watching today thus far, and an update on some of the moves we have made.
AUDJPY : We noted the very strong move overnight after RBA Governor Lowe spoke. We have been core short AUDJPY so this was a welcome move in our favor.
You can see above how price plugged into our Pi Line and subsequently failed, then broke below the bands to confirm that bearishness. The Yen continued to be the strongest currency coming into this morning while the Aussie continued to be the weakest. We used this opportunity to book some gains on the short side. We still remain core short overall and would definitely look to add on a bounce, if we do get one. If not, and the pair continues lower, we still have a short position to participate in such a move.
VIX Index: We did add to some VIX Index calls this morning as we saw an opportunity to buy. We’ll stay patient with this one.
DOW: Until the VIX Index really breaks out, it’s been useful to keep buying dips on the Dow. We also booked some gains into the highs this morning.
NASDAQ: We are running a small core short position on the NASDAQ. We added this morning and we’ll take that into this afternoon, looking to cover some on any move to 7,000 or below.
SILVER: We have been playing the long side of late. We bought well near the lows, covered those gains, then bought again and covered another profitable piece. The risk is going to be below the lows of the day, down near 15.72, and just beyond that the lows of 2 days ago, sub-15.70.
GOLD: we still remain core long, as with Silver. We’re watching the lows from Monday to define our risk level.
OIL: we prefer it on the short side. It appeared oversold this morning we used the opportunity to cover some of our position. We are not looking to re-short it until closer to the underside of $55.00. That might be a trade for tomorrow.
Hope that helps. Enjoy the rest of your trading day.