This bottom-fishing recommendation in September Yen uses a proprietary set-up that I call a ‘mechanical’ trade. The implication is that the entry price and subsequent risk-management are determined automatically, as follows: 1) bid at the green line (x=0.68936) following a pullback from between p (the midpoint Hidden Pivot, 0.69683) and p2 (the secondary Hidden Pivot, 0.70429). If the move goes your way, take off half the position on a rally back up to p=0.69683, and another 25% at p2=0.70429. The remaining 25% can be held for at swing at the fence. Since the initial stop-loss just below c=0.68190 implies entry risk of nearly $1000 per contract, I suggest using a small-pattern trigger, with a commensurately small stop-loss, to initiate the trade when x is hit on the pullback. Generally, however, I will recommend these trades only when I think the odds are favorable for cashing out on a move of at least one level (i.e., from x to p). _______ UPDATE (Jul 4): Although the futures made a high above p2=0.70429 last week, my recommendation is unchanged: buy a pullback to the green line (x=0.68936) using a small-interval trigger. _______ UPDATE (Jul 12, 12:46 a.m.): The September contract lies within a hair of stopping out the position detailed above for a $934 loss. If this happens, I will publish a new trade shortly thereafter so that we can move on. _______ UPDATE (Jul 14): A flaccid move lower stopped out the position.
JYU25 – September Yen (Last:0.68155)
