October 16

I was mildly bearish with ICT being bullish.  London open had a Judas up on the cable, SMT divergence and USDx divergence.  Type I reversal stochastic divergence.  Running out last Friday's high for stops.

Went short at 1.6103.  First TP at a Asian high and yesterdays high.  Price hits it and goes to an OTE level to go long from Asian low and ends up stopping me out at break even.

Screen clipping taken: 10/16/2012 7:53 AM

Unfortunately banked profits on this trade were wiped out by a loss on the fiber.  When I checked charts at 5:00AM my cable trade was nicely in profit and appeared to have given an OTE to go short again.  Checked the fiber and it had ran up to the daily high looking like it was running stops out to go short and also giving SMT divergence. 

I went short at 1.3006 and stopped it out at 1.3019.  After Ainslie woke me up during New York I checked again and cable had continued to fall and fiber stayed put.  I thought of entering short again but luckily stayed out because I would have immediately been crushed by the sharp move up. 

Thought about going short again when it got near the monthly high but if there is one thing I have learned is to get out of the way on days like these.  Maybe try a London close but don't try to counter trend trade even with massive USDx divergence and SMT divergence.  The tools always will tell you to go the other way on sharp moves like these but you need a rock hard level to work off of.  Monthly high may be it but I'll just wait for tomorrow to confirm.

Screen clipping taken: 10/16/2012 7:58 AM

Screen clipping taken: 10/16/2012 8:25 AM