Sterling/Greeny trade

Remember the CAD/Yen trade I told everyone to recommend to someone who didn't have to always watch the market? Well...it's doing fine. HOWEVER, the key to this is the money coming out of the Yen into the Canadian Dollar. We took losses in my US/Yen trade because I think the markets will be coming down...so the strength in this is somewhat of a divergence.

I just bought 2 lots of Cable...because the breakout of 1.50 is pretty significant, and has a similar bullish pattern to the above. You should see a reverse head and shoulders (clicking on the chart gives you a clearer view):

Three things to note.

• The neckline of the formation is around 1.50. So, if that is the case, we would subtract the low of around 1.35 and the difference between that and the neckline break is what you could look for on the upside.



• The general bottoming look. Trading doesn't always have to be complicated. Just like the oil chart from last week...the bottoming here is pretty obvious.



• We have daily and weekly trade triangles issued.