Do You Want To Ride The Biggest Moves Of The Year? Try This Entry And Exit Tactic
This last week has really driven home the
importance of having an entry system while swing trading. My definition of
swing trading is holding a trade for as long as possible while profitable. This
trading philosophy enables one to stay in a trade the maximum amount of time in
an attempt to ride the biggest moves of the year. As you know, this week’s
large interday moves in the DJIA–though range bound intraday–is the bane of swing
entry systems. The good news is, although the system did not earn anything this
week, it did not lose very much either. In this regard, it did its job very
well, keeping us flat overnight with our pre-determined channel figures clearly
reflecting the upper and lower intraday range. It is my contention that
systematic entries, combined with discretionary exits (once profits are reached)
and systematic immediate pre-profit exits after entry are the keys to successful
index swing trading. Next time: more on exits and whys.
Here’s our strategy for
today:
The DJIA
The system is flat the Dow entering the
open today. The channel of 10597-10703 on the cash DJIA remains intact. Will
mechanically trade the system today, and I have no bias whatsoever at this
time. My top projection made last week remains valid, but time will tell.Â
Flat
Oil
This has been one tough trade for me. As
you know I am positioned sized to be able to withstand the present adverse
excursion but its getting close to its limit of 67.07. The International Energy
Agency released a downward revision in their oil demand forecast yesterday which
may positively affect the short position. We will see!
Short/loss
US Dollar
What a great swing trade so far! The
dollar continues to weaken against the euro pushing the pair to new short term
highs. Technically speaking, the next resistance I see on the chart is in the
1.2700 area. Holding longs here. Long/profitable
US Equities
I am in the process of choosing our next several
watch list candidates to compliment the core portfolio. Stay tuned for my next
choices! Here’s what’ s happening in the port!
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GOOG |
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Holding here with nice profits. Moving
trailing stops to capture additional profit should my analysis of additional
downside be incorrect. Short/profitable
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X |
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Our US Steel long continues to add to
profits. My software is currently still indicating a long bias. I am expecting
further upside. Long/profitable
Best wishes in the market!
Dave G
David S. Goodboy (marketsurfer) has been trading professionally for over 14 years. Mr. Goodboy trades ETF’s, stocks, index futures, energy futures and options. His primary focus is a unique multi-time frame index trading system based on a combination of time/price cyclical studies and statistical models. David was a trader/partner with Biltmore Capital, traded with an option arbitrage firm, and is currently in the launch stages of IntrendX, a global multi-strategy fund.