Cerebro1's  Instablog

Send Message
I am currently working as a Currency Strategist at the Trinidad and Tobago Unit Trust Corporation with responsibility over the TTUTC Global Bond Fund. I was previously responsible for the TTUTC Universal Retirement Fund. I am a graduate from the University of the West Indies with a Bsc. in... More
My blog:
  • Hanging Out With A Living Legend  0 comments
    Nov 15, 2012 9:57 AM | about stocks: GLD, FXE

    Last night would have been the last time for 2012 I would have seen a good colleague of mine so I took my evening and spent it with him over a couple of drinks discussing market views, outlooks and different strategies that may benefit portfolios over the next 12 months (actually I lost a bet with him over where the S&P 500 was going in a month's time and I had to buy him drinks and sushi). This led us into a discussion on XAUEUR (Gold on the Euro). We drew swords on this one because his view on the markets are derived from fundamental analysis while I delve into the world of technical analysis. To make matters worse, in the middle of our heated discussion two gentlemen from the international Canadian bank where he previously worked approached the table. The gentlemen showered my colleague with platitudes and told war stories about him at the bank. Who knew I was battling a living legend on shorting XAUEUR.

    XAUEUR is a tricky one so I hope anyone who reads this look at it very carefully before making any decision to go long or short. XAUEUR is at a historical resistance zone. In October the FX cross had a sell off of over 6% in October and a huge bounce back (I'm calling it a dead cat bounce) during the first couple of weeks in November. XAUEUR broke above the 50 DMA and is currently retesting it. My expectations were for it to fall closer to its 200 DMA, about 3.50% lower from current levels. Everyone knows the fundamental view on gold and on the Euro so it was a difficult to sell my view to my living legend colleague and the gentlemen. I took a position in XAUEUR this morning, but given the volatility experienced from US initial jobless claims and CPI results, XAUEUR hit my initial price target, I then moved my stop to break even levels and was stopped out at break even. Please feel free to look at my chart below and trade/invest at your own risk.

    (click to enlarge)

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: I wrote this myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose security is mentioned in this article. The views expressed in this article are my own and are not necessarily the views of any companies or organizations I am affiliated. I expressly disclaim all liability in respect to actions taken based on any or all of the information in this writing.

    Stocks: GLD, FXE
Back To Cerebro1's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.