USDCAD: Potentially a major bottom here
I'm long dollar here, we have a strange situation where equities are calling, but hedges don't go up, only cash acting like a hedge. This is probably related to longer term variables at play, specially tied to oil demand fading, and international dollar scarcity acting.
If prices hold up over 1.3045 this can go towards the white box target easily, and potentially higher, so it'll be worth it to let it move and trail stops in case it moves faster than expected within a few days.
I'll be on the lookout to exit equity positions if needed or to short the index against longs again if necessary. For now I covered a call short I had in #SPX but logically didn't do anything with longer term stock holdings. The trend is up for longer most likely, buy we face some short term volatility now.
Cheers,
Ivan Labrie
If prices hold up over 1.3045 this can go towards the white box target easily, and potentially higher, so it'll be worth it to let it move and trail stops in case it moves faster than expected within a few days.
I'll be on the lookout to exit equity positions if needed or to short the index against longs again if necessary. For now I covered a call short I had in #SPX but logically didn't do anything with longer term stock holdings. The trend is up for longer most likely, buy we face some short term volatility now.
Cheers,
Ivan Labrie
Comment:
Daily is closing quite strongly here, bigger volume after the initial volatile action earlier.
Comment:
As a sidenote, I closed hedges earlier and bot back #SPX a bit lower than where it is now.
Trade closed: stop reached:
#USDCAD stopped us out
Trade closed manually:
$USDCAD ran its course, it might be a good time to short it, if breaking under a previous day low:
