Jamie's Pick: 07/06/12

EURUSD shorts were exited this morning (via Twitter @JamieSaettele) at 12335. This doesn’t mean that I am no longer bearish longer term. It just means that reward/risk is no longer outsized to the downside in my estimation. There are certain trading guidelines that I’ve come to respect and one such guideline is to take advantage of a move on news in your favor, especially after an extended move. A 2.5% decline in 5 days qualifies as an extended move. In fact, this 5 day decline is the largest since 2/29-3/6. The EURUSD rallied sharply for the next 2 days before weakness resumed. At this point, my focus is on returning to the short side as close to 12400 as possible (12150 still of interest if we can return to the short side).