What a day...

September only started and has been a rollercoaster already. As market sentiment kept going down, profits kept coming in as participants kept flowing into "safe havens" such as the yen and swiss franc. Well, then the market reversed (as it always does I guess...) and with the better than expected US labor market data an outflow of capital out of those havens was triggered. My short position in CAD/CHF actually was hit hardest with a loss of 1.73% in a single day... The bullish piercing pattern (explanation see http://www.swing-trade-stocks.com/candlestick-patterns.html) might have been interpreted as a sign but then again my strategy is based on trends and not candlestick patterns. And so far the trend is still my friend...

The long positions in the yen are still not really moving in any way. Using a candlestick pattern again, there is indication of a trend reversal however. Today's candle might be a reversed hammer (explanantion see http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_candlesticks, scroll  down a bit)

In a reversed hammer bulls try to takeover but cannot do it just yet. This friday was marked by a good US labor market but negative ISM-service sentiment. This does fit in the general bullish attidue (long top) but still some holding back due to traders being slightly unsecure. This pattern needs confirmation on monday. If the chart rallies, both yen positions will be a loss as well.

Those big swings in equity are quite an experience to me as I did not quite realize how quickly those things can happen. I am definitely trying to detach my emotions from each position and each market movement but I have caught myself "baby sitting" positions, meaning to check the markets every hour instead of once or twice a day. Obviously will have to work on that but I hope my learning curve will be steep!

Now just some bookkeeping issues. I started to record monthly AND weekly equity levels to gain some performance insight. So in a sense the experiment part 2, currencies started on september 1st! Let's see where it goes. I am definitely planning on going all the way till next summer and hopefully another year while doing my Masters.