Following the giant sell off last Friday I went searching for some gap trade opportunities on Sunday night. I’m still hacked off I didn’t sell USD/JPY when it opened with an up gap in favor of the down trend. I can hear myself saying $98.74 is the supply level to sell, good grief. If I could trade a day late I’d be flying a Gulfstream G-550 by now.

I did manage to harvest a few pips off the USD/CHF as it gaped lower. Anytime I get gap lower after a long period of selling it sets up a long trade. I liked the hammer it formed and I wanted to trade it long for a few hours to see what I could get. I ended up holding it overnight and after a brief scare managed to get some pips out of it. This was not the cleanest trade I’ve ever made but profit is profit.

Historically I haven’t seen gaps as frequently as I have now with the recent volatility however when they appear a gap can offer a great trade on Sunday for those of you who work day jobs.

Overall a decent start to the week and I hope you’re off to a good start as well!

We have some good fundamental data on tap this week including Trade and Retail Sales data. I’m particularly interested in the Retail numbers since everything else in the U.S. seems to be on the stabilization path. The expectation is a big fat 0% but if it shocks significantly in either direction we could see some fun price action in the risk pairs such as AUD/USD or USD/JPY.

Best of luck,

Ryan