USDMXN: Fading the irrational rally, viva Mexico!

This morning I bought an $MXF stake at the open, and shorted USDMXN at 20.0022. I think we might be in the presence of an 'ending diagonal triangle', or terminal wedge, in Elliott Wave parlance, in particular according to the Neowave rules. If that's the case, we will a see brutal rally in the Peso, sending USDMXN down to 16.43 in approximately the time the arrow indicates on chart. My clients are long MXF but not in the USDMXN trade, it is a higher risk trade, so only take it if you have higher risk tolerance and don't risk over 1% on it.

The initial move in equities and the peso made absolutely no sense in my opinion after discussing it with Tim West. We've been buying on weakness today, along with my clients and the people over at the Key Hidden Levels chatroom -and with great results if I may add-. Apparently Carl Icahn tagged along, buying a neat 1 billion worth of stocks today.

Good luck,

Ivan Labrie.

Comment:

The market overreacted to Trump's election beyond what I had expected. This trade won't be viable until Trump mentions problems with his south border wall perhaps.
I'm out for now.

Comment:

/you could hedge it buying GVA (granite)/

Trade active:

Shorting a new daily low.