07 Jan Weekly Swing Trading Round Up 7th January 2012
What an incredibly dull trading Week this has been! Well, it wouldn’t have been so dull if I’d been in trades that were actually going somewhere…what a doughnut closing out the EUR:AUD swing short, why did I do that, well it’s another lesson in trading what you see, not what you think! I felt the large declines over the holiday period were likely to have been low volume moves that may reverse themselves once the New Year volume comes back but instead those moves actually accelerated and my exit of that EUR:AUD short was at least 300 pips too premature.
Indices have been a waste of time this week. The FX markets suggest Indices are a little on the frothy side right now but their resilience has been quite strange to watch and the low volumes have made them almost impossible to trade unless you have the patience of a Saint.
Currently have 3 swing positions running.
AUD NZD short goes into the Weekend showing around 30 pips profit. Because it chops around so much it’s one of those pairs that you become tempted to take profits on at extreme intraday levels with a view to re-entering at better levels though I’ve avoided that temptation thus far. The only problem with this pair is the high financing that has to be paid due to the interest rate differential but these things equal out in the end because you receive interest payments on long AUD positions.
AUD:CAD long goes into the Weekend also showing around 30 pips profit. As you’ll already know, I’d been wanting to buy it for some Weeks but due to the longer term rangebound characteristics I wanted confirmation before buying. That confirmation came but it just wouldn’t retrace enough to give a great low risk entry so in the end I just bought it on an intraday dip….which continued deeper but eventually recovered and the chart looks quite healthy at the moment (Cue Monday’s crash!!)
The final position is a GBP:USD short, analysis of which I’d recently discussed in this post but the credit for taking the position has to go to one of my forum contributors who put forward a superb analysis which more than complimented my own…He know’s who he is and I’m dying to get a Guest Post out of him but he keeps avoiding the subject 😉
As a Weekly review of the Markets in general it’s fair to say the U.S Dollar is looking technically quite strong whilst Indices appear to be levitating against fairly bearish technical’s. To a degree this is making it temporarily difficult to find good swing trade opportunities but something will give in the end. The bearish EUR theme has continued as shorts hit all time record levels and I guess this is the train we should all have been on. Check out my EUR:GBP analysis which has created a lot of interest and still remains one of the few EUR pairs that still has plenty of downside room.
Over the last couple of Week’s I’ve been doing a lot of behind the scenes work to improve the functionality of the Blog as traffic has been rising, specifically increasing the speed by tidying up some code and making things run smoother. I’ve looked at the possiblity of running streaming charts in the window above this post but it’s proving more of a headache than I first thought and I’m not really sure if there are benefits of this as most of us already have our own charting packages and my daily forum header is littered with live charts anyway. You can access my forum by signing up for free at ADVFN
Finally, it can be difficult for readers to quickly know which of the discussed trading set-ups I’ve actually taken positions in. I will generally post a comment under the specific post detailing an entry or exit, but this potentially means looking at the comments of every post each day to find which positions I’ve now entered or exited so I’m looking to create a table in the side bar to give an instant snapshot of open positions. I’ll work on that this Weekend.
Have a great Weekend.