Premise for today is to look for test of 1101.75 and see if it holds or not. If 1101.75 holds, look for test of 1084.50 and potential sideways market 1101.75 - 1084.50. If 1101.75 does not hold, look for continued tough grind up until correction. If price tests and extends 1084.50, look for correction down to 1073.25 and potentially more significant support at 1063.50. Price is very stretched and due for a correction but I will stick with the trend until clear short side structure comes in. The short side will remain tough and prone to squeezes. There will be a good downside correction soon but I will be careful not to take losses constantly fading this move looking for the one good correction. If price starts to trend back down, then adjust.
Hey Brian,
ReplyDeleteI was wondering what you and your firm's take on the recent Steven Schonfeld letter on the troubles of prop traders?
http://notablecalls.blogspot.com/2010/07/schonfeld-letter-to-traders-it-is.html
Hello. I can not speak for the firm but my personal opinion is that this has nothing to do with legitimate prop firms who do not take deposits from traders. FINRA is a self regulating body for FINRA firms. This is not "new legislation". They are concerned about sub accounts in terms of customers opening accounts and having a registered rep trade their funds. Prop trading has nothing to do with that. Somebody who has capital has a right to let others trade it privately. The regulation comes in when you accept other people's funds to trade on their behalf. It is apples and oranges. This looks like to me compliance attorneys once again creating paranoia so they can steal money from businesses. It is pathetic and I am fed up with those who have no talent and no ability to earn from hard work living off the fruits of those who produce. Schonfeld and others are just trying to protect their money as everybody is being forced to do in this environment of stealing. Unfortunately, it is affecting those like us who are trying to produce and make a legitimate living.
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