10 Mar This Week’s Swing Trading Round Up; 10th March 2013
The Markets produced a fairly interesting Week with the DOW achieving all time highs and not finding any apparent resistance at the previous 2007 all time high. Quite amazing to consider that every long position you had ever taken will now be showing a significant profit! In fact, I’d guess most of us would be multi-millionaires if we’d held onto every DOW long trade ever taken!
Trading was a little more sedentary for me, day trades were up and down through the Week and I felt quite relieved to find I’d actually made an overall profit.
By mid Week it became very difficult to work out what to do with the USD:CHF long from February, I really had no idea where it was going so 90% of the trade was closed out whilst 10% remained simply as a way to keep track of it and understand how it would end. That 10% eventually turned a 226 point profit which wasn’t expected to be honest, but the extra profits that gave were minimal with such a small position size. The overall aggregate profit taken on the trade worked out at 124 points which is still fairly respectable for this slower paced pair.
Looking through various charts mid-Week and I kept finding myself going back to GBP:JPY looking for a swing long entry. However much I looked at it, I couldn’t find technical justification that it would rally yet a strong gut feeling kept drawing me back to it. I’ve seen similar patterns before and they all rallied, but there was no obvious support line, trend line or fib level to back up my view so I could hardly start banging on about it on the blog, but I took a long position anyway and it paid off.
If you can see any technical reasons that would have had you entering long in the black circle area, I’d love to hear about it….
Also note the gap circled red which I’m sure will be a future target zone for the next major correction.
In a previous update I suggested Indices were overbought and a correction would be nearby. A 200 point DOW pull back soon followed but that’s certainly not enough to be classed as a correction and we still have Indices and many FX pairs either at overbought or oversold levels thus its not in my interest to attempt entries into these tired trends just yet but instead I’m waiting for something to give way, something that will provide early indication of forthcoming retraces/corrections/rebounds etc. Yen pairs could be close to providing new opportunities but there’s little else on my radar right now. AUD:NZD has rebounded quite strongly from the bottom of its multi-year trading range so I’m keeping an eye on that too.
Hope your trading is going well and I hope to have some new trades lined up to share with you shortly.