I agree. Like you noticed, most steep drops over the last two weeks get bid up almost immediately after. Makes me wish I had the 'sand' to buy more dips! Playing it safe for now... Here's my 2 cents from my blog just now...
Monday, November 16, 2009
"...today was a good day." - Ice Cube
While it's tempting after today's gains to slide the stop up a tad, I've decided against it. We tapped a high at .9405. Since then price action has held stable, but looks as though it may test the range we just broke out of again. Keeping the stop ~150 pips below current ranges has worked for two weeks, while over-tightening would have booted us a few times over.
On the daily charts, the most recent swing low is still .9200 . There was a brief pullback since then in which .9260 held, but the correction was sideways and not the more healthy "two steps forward, one step back." While seemingly bullish, we could retest this range to shake out the "weak" longs. If it is, in fact, bullish then there's nothing to worry about. If it turns out to be a true loss of momentum then we're stopped out at a moderate 2:1 R/R ratio.