There is no point in lamenting the disappearance of the gospel of that god among FX gods, Goldmans' Tom Stolper, whose fades generated anyone who did the opposite of his recos nearly 15,000 pips in profits over the years. It is time to move on... and start doing the same to his peer at Bank of America, the firm's head chartist, MacNeil Curry, aka Stolper 2.0, who incidentally was just stopped out of his EURUSD short.
From BofA:
Stopped out of €/$ short, but the bearish view remains. £/$ to squeeze higher. Stay bearish €/£
Yesterday, we were stopped out of our €/$ short recommendation, shortly after initiating the trade. However, while the break above 1.2990 points to a different type of correction (and a potentially larger one) than anticipated, it does not change our view that gains remain corrective ahead of new lows to 1.2787/1.2694. However, for now, it is not immediately clear as to how far higher the correction can extend. A break of Wedge support (now 1.2932) says the downtrend is resuming. In contrast to the uncertainty surrounding how high €/$ can extend, it is a clearer picture for £/$. We look for further gains into the 1.6392/1.6487 zone before renewed topping and a resumption of the larger downtrend for 1.57 and below. HOWEVER, of the two currencies (€ and £), £ is the stronger of the two. Indeed, the € /£ trend remains clearly lower, with a break of the 7-week channel support at 0.7896 pointing to a resumption of this downtrend for the Jul'12 lows at 0.7756 and below.
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Alas MacNell doesn't understand that now that only algos trade FX (since all institutional traders have quietly quit after it has been revealed that the biggest coordinated asset manipulation, probably in history, took place in FX for the past decade and even one or two wrists may be slapped) the only trigger points are limit and stop levels, which means that the best way to be stopped out of a trade is to tell the world just where your stops are...
That said, we will be sure to advise readers about any and all exciting future opportunities to do what (what little remains of) BofA's FX prop desk does, i.e. the opposite of what its clients are advised to do.
