LLOYD: “I’ll bet you 20 bucks I can get you gambling before the end of the day!?”
HARRY: “No way.”
LLOYD: “I’ll give you 3 to 1 odds?”
LLOYD: “5 to 1?”
LLOYD: “10 to 1?”
HARRY: “You’re on.”
– Dumb and Dumber
As discussed, no surprise with seeing the euro dip bought on Draghi. Again, as we have been going on in our latest weekly outlook video and repeating this all week, the short-term focus is on potential event risk this weekend with developments in North Korea and with Hurricane Irma.
What makes this weekend particularly interesting, is not that we have any certainty that something market moving will happen but that it is anyone’s guess as to how we open on Sunday if something does happen. This means that systems/models are going to have trouble dealing with the kind of aggressive gaps that might trigger moves outside any kind of conventional/forecastable sigma move.
The point is not to over-dramatize the situation but to make sure readers understand the implications and possible consequences of running aggressive positions over the weekend. We will discuss this in detail, along with positioning in today’s webinar session.
Good luck to all and remember that you can use the Tags or Search options on the right hand side of the blog to look up the latest charts you may be interested in reviewing.