Friday, May 27, 2011
I discussed 4 days ago about the usd/chf downtrend looking to continue, and it doesn't look like I could have been much more right (not very common, so I must pat myself on the back a little). Its broken new yearly lows now and I would be pulling some of the trade off here and then looking to ultimately target the 100% level of the extension shown in yellow (@.8146).
Here it is, my first ever blog posting as requested! :) Again the Delta Vol shows continue selling on both index. This is why I am still bearish from my inital positon on the russell at 838.40. Of course as everyone know, using vol analysis for your trading can change at anytime when supply and demand comes in. You do not know when but you need to be able to react to it quickly. As of right now, I am still bearish and think this morning was a mark up. Of course this can change if Vol picks up or the bears give up near end of day, but hints of it will show up in the chart. I hope this help. I'm just playing the odds and managing my risk with a trailing stops. FYI... i hate this market btw with the FED being involved. Its not the same anymore these day...... good luck!
PS: Since this is my first ever post, I had to remove some charting items for legal purpose. Just being truthful just in case one of you ask. :)
I offered Walter Energy (WLT) as a great trade opportunity as it formed a hammer on good volume off great support. So far if you got in this trade in the 115-120 level you have been rewarded the last three days as we push into the 125 level and its first real test to the upside. If you happen to load up then this is a good opportunity to maybe consider taking a small quantity off. Still feeling this ends up back in the 135-140 range, and have targeted my position as such.
Edit: The awful housing number that just came out seems to have maybe given us an engulfing pattern to look into selling the euro here for at least a small gain.
After talking about corn earlier this week as a potential buy if we could see it pull back to the 717-715 level, it seems it decided to atleast for the moment bounce off the first retracement (@731). But with the shooting start formed yesterday, if we see a break of yesterdays lows I could see it heading right back towards my targeted entry aread over the next couple days. Otherwise if it doesn't, Tuesday might have been your best opportunity to get into this trade.