Today's Plan

I said Gimmie Danger yesterday and got it in the Swiss franc instead of the S&P.

I completely misread the pattern in the Swiss and legged out of my hedge only to see it keep going in the direction of the hedge and against my core franc position. It made a new low overnight which I'm now using as my stop (.8326).

I did have an order for .8320, but since the pattern has changed, so have I. All is not lost if I get stopped. Through hedging with 6S, even with a few major mistakes, I have a good cushion built up that well exceeds the projected loss on USDCHF.

Yesterday there was a random report that EU finance minister Juncker said that Slovenia won't fall into a Greek-style trap. That is a huge headline to me, essentially saying to me that it will. Remember how contained the sub-prime mess was supposed to be? It is my opinion that Eastern Europe will be the straw that breaks Europe's back. Who will be most affected? Not the Euro, but the Swiss franc. While the PIIGS were gorging themselves on cheap Euros, Switzerland quietly extended a higher percentage of loans to Eastern Europe than any other country.

For the S&P, the key number for me is 1299 on the cash index. That is the 23.6% Fibonacci retracement of the move from May 31st. This is a key area because the S&P has been so weak that it has failed to retrace even this minimum percentage since 5/31. If it fails again, watch out.