NOTE TO SELF: DON'T ENTER TRADES JUST BECAUSE THE MARKET IS OPEN

Its a common mistake to want  to always be in the market. Unless you are providing liquidity to the market or scalping for a big hedge fund, its best to wait for proper opportunities in the market. Made that mistake yesterday was down 150pips and 24 hrs later is when I am recovering from the losses. There will always be opportunities in the market. As George Soros in his argument against the efficient market theory said, the market is all about formulating a hypothesis and testing it against the market. If it holds you make money, if it doesn't it means you are wrong. If you don't have any strong hypothesis or if your hypothesis gets negated, stay out of the market.

FRONTIER MARKETS (KPLC)

Had a chat during the weekend with someone who was involved in planning for an energy company. She confirmed that the law was indeed amended to accommodate an alternative distributor and that actually the alternative distributor is in the final stages before launching.  There is just some funding issues but they will use the currently existing national grid. I would expect share to dip once its official on the launch and would possibly advice reducing exposure in this company. Meanwhile Kengen is preparing for a rights issue, I would expect investors to exercise the rights but oh well, the market has its surprises.

GOLD&SILVER

Gold barely holding about breakout level and silver just hit 70.7% retracement. I will buy into this small dip in both metals with tight stop and see how it pans out.

BITCOIN (Clever Russians)

Umart, Russia’s Largest Online Retailer Drops Plan to Accept Bitcoin. Smart move that was imho.

EURJPY

The cross is approaching a 2m downtrend at 140.10-20 area. Wait for break before getting long

TRADE IDEAS.

Looking to short eurusd somewhere around 1.3715 with 90pips target and cable at around 1.6450 with about 40-50pips targets. Expecting possibly a run for the stops above 1.3700. Yen crosses currently being dragged higher by the rallying S&P500

FRONTIER MARKETS

Talk that there might be a big buyer gunning for CIC insurance shares about 80M. No idea if it will be a one off purchase or gradual to make it cheaper for the client. As I had posted here before, foreign investors are very optimistic about the insurance companies stocks over 3-5 years time.

BITCOIN FLASH CRASH

Bitcoin had a steep dive in seconds from $600 to $102, approx 80%. I am curious why any financial institution would accept a currency that can fluctuate up to 80% in seconds. Its unregulated, that just about the worst thing about it.

 Slow day in the rest of the market. Gold encountering resistance circa 75/81

EURO UPDATE

• GERMAN CONSTITUTIONAL COURT SAYS TO REFER ECB'S BOND-BUYING PROGRAMME TO EUROPEAN COURT  
• GERMAN CONSTITUTIONAL COURT SAYS IT WILL RULE ON LEGALITY OF ESM BAILOUT MECHANISM AND FISCAL PACT ON MARCH 18 
•  GERMAN COURT SAYS SEES SUBSTANTIAL REASONS TO SUGGEST OMT PROGRAMME EXCEEDS ECB MANDATE AND INFRINGES BAN ON FUNDING MEMBER STATES  
• GERMAN COURT SAYS IT IS POSSIBLE HOWEVER THAT LIMITED INTERPRETATION OF OMT COULD MAKE IT CONFORM TO LAW

GOLD SUPPORTS AND RESISTANCES 2/7/2014 If having problems contact me

gold supports 1252.82 1246.5559
1240.323121
1234.121505
1227.950897
1221.811143
1215.702087
1209.623577
1203.575459

Resistances

1259.0841
1265.379521
1271.706418
1278.06495
1284.455275
1290.877551
1297.331939
1303.818599
1310.337692