As if the U.S. Dollar didn’t already have enough problems this just came across my news wire:

The greenback fell to an 18-day low against the Chilean peso during Thursday’s mid-day trading in New York. As of 11:55 am ET, the dollar was at 438.60 versus the Chilean peso, down from a high of 450.35 hit in the earlier session.

-RTTNews

It can’t be good when even the Chilean Peso is beating up Dollar! If you think gas is expensive, just wait to see the price on Chilean Sea Bass come June!

Most traders understand the classic adage “trade with the trend, the trend is your friend until it bends” yet few actually heed this advice when faced with a strong trend. Fooling themselves into thinking they can predict the end of a trend, they trade against the trend only to be run over by the market again and again.

Let’s get some perspective on EUR/USD shall we? Since February 8^th Euro has rallied roughly 1,300 pips against the Dollar. Following the trend over the last 26 days you would have done well buying EUR/USD. Even if you came to the party late, long EUR/USD was a good strategy.

Tonight I pondered with disbelief FXCM’s Speculative Sentiment Index on EUR/USD. According to the data 62% of traders are still trying to fight the current bull trend by holding short positions! I find it amazing that traders continually step in front of trends and lose money stubbornly trying to predict their end. EUR/USD will eventually slow but wait for proof the trend has broken before you step in front of the Euro Express again!

I can’t believe my last post was January 21^st! Shortly after that trade I packed up and moved 2,000 miles putting a crimp in my blogging routine.

I spent my childhood living in the Seattle neighborhood of Ballard and after stays in Oregon, California and Texas I have returned to the Evergreen State, loving every rainy minute of it. Texas may have “hill country” but whoever coined the phrase “Texas is God’s Country” apparently believes God never visited the Pacific Northwest. If you never visit Seattle, you’re missing out on something special because the Puget Sound region is absolutely beautiful!

I arrived about a month ago and have made following observations:

1. The guys at High Plains Diesel Service in Amarillo, TX were a lot of help when my Penske truck broke down in a Wal-Mart parking lot.
2. Texas didn’t have Peet’s Coffee & Tea. I’m officially finished with Starbucks.
3. The house I grew up in hasn’t changed much but the streets seem narrower, I must be wider.
4. The weather radar on our local news is lame compared to Texas; but Seattle doesn’t regularly have weather that will kill you.

I experienced some frankly terrifying thunderstorms in Texas and one tornado but I will miss the sights and sounds of Texas thunderstorms. It is hard to describe the appeal of something so dangerous; you just have to experience a powerful squall line to know what I’m talking about. There is a lot of beauty in thunderstorms like the below photo I took from my back yard.

But overall I am glad to be in Washington and even happier to be back to the business of FOREX trading!

Seattle Skyline Photo Credit: jacobC