Trading Trends end of week wrap up

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2 mins. to read

NFP day yesterday. Unfortunately I was away from the computer when it all kicked off as I have a day job (worse luck!) and my clients were pestering me (double worse luck!). I swear when it starts costing me more to go to work I’ll jack it in and become a full time trader. Today could have been the day…!

Yesterday I posted that the dollar was nearing a trend line and that if it broke it and the SPX went lower that my chances of seeing 1400 on the SPX would be dead and buried. Luckily I was out of my SPX trades and I didn’t have them reverse on me. 

No mention of US QE extra  and the NFP were not brilliant. So I wasn’t sure what was going to happen. The BOE announced more QE, so I figured the FTSE may go up, the GBP down. Just goes to show I shouldn’t bother myself with economics and to just concentrate on the charts! 

My NZD/USD take profits yesterday so far proved a good idea. I placed the NZD/JPY stop underneath yesterdays low and took profits when i got stopped out.

 

I did in fact trade SPX today but at the US open. I have attached a chart of how I traded the open and where my profit targets were and how I took a profit early, which is sometimes a good idea but not this time. I closed out at a round number as there is usually a bounce. It would seem that the ‘powers that be’ actually wanted to trade the same way as I though and took it to the logical profit target area as well.  

The SPX has a little way further to go before I start getting interested again. There is a trend line that it is approaching at some speed and I want to see if I can grab a bit of a bounce. Obviously if it cuts through it I’ll be looking for a short all the way down for the next wave. When I have the fabled £100k account I’ll be trading swing days as they are quite obvious most of the time (to me anyway), its just hard to swing trade the SPX with a small account as the draw down would wipe me out… 

Due to the amount of Inside/Outside days this last week I have a few trades that are in the money/closed in profit and unfortunately a couple out of the money. I’ll wait and see what happens Sunday/Monday before closing the trades out manually as I would like to give the strategy rules a chance as a small pull back could actually cost me more in the long run if more news comes out and the price action has just squeezed people out.

 

EUR/USD however has broken the low from a couple of months ago, which is a very bearish signal. 

Happy Weekend!

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