Monday March 25 2013
Steve Kaplan at truecontrarian.com notes that the public agonizes over recent paper losses all weekend, ala Gail Sheehy's observation that poor people think about Tuesday all day Tuesday while the rich think in terms of decades. And so orders are placed to get out of recent losers on monday morning. Markets can exhibit irrationality at market turns which is why we need to take advantage of just that.
Keep your eye on the currency and oil balls, FXC is up thirty cents while GDXJ is down 37 cents this morning, I should have bought way more FXC than a mere 150 shares Friday, FXA is up 30 cents as well, USO the Oil ETF is up 30 cents. Gold was up on Cyprus uncertainty last Thursday and Friday, to day we have a 'deal' on Cyprus and gold pulls back while the Canadian, Aussie currencies continue their quiet advance and oil is up, Tt is irrational for the loonie and aussie to be up while UUP is up nine cents but there you have it, hello irrational Monday morning
GDXJ Monda Morning Thirty Minute chart
What is that old saying, luck is the intersection of the prepared and experienced. GDXJ had an air pocket drop all the way to 15.52 this morning,and then immediately rebounded to 16.75. Unless one had placed orders as recently as Friday afternoon, one would not have gotten a buy.
FXC
I mentioned my carefully placed orders in FXC, an ETF for the Candian Dollar, which got me a position at an average of oh 96.80 or so. Now FXC has jumped 32 cents on the open. I don't know how much longer we can depend on these gaps, the distance from 97.50 back to 97.20 being filled but I suspect orders should be placed below 97.50.
Comments