Sometimes, Breaking The Rules Makes Sense
DJIA
The DJIA futures are up a little, as I
write this, but way off their highs reached earlier in the morning. It appears
that they will be negative by the open.   The trailing stops profitably closed
out the shorts yesterday and I am flat entering the open. The death channel is
calculating at 10423–10477. The channel is very tight this time, potentially
indicating an explosive move. I will mechanically trade the channel per the
systems parameters today. Flat/no bias
Oil
The front cover of the Economist, this
week, reads “Oilholics”. Once again, more fodder for my contrarian-based short
position. A questioned was raised in my trading group this morning: is it
possible that “someone” is trying to corner the oil market here? I doubt it, but
it is certainly not outside the realm of possibility. There has been much talk
of instituting price controls to protect the final consumer at the pump. Last
time this was tried–under Nixon–the great gas shortage scare of the 1970’s
resulted. Price controls are simply not a good idea and the long term economic
effect can be quite significant. I have committed one of the trading book
writers cardinal sins today, adding to a losing position. I doubled my short
position at 67.50. I am still within my max position sizing guidelines and have
lifted the breakeven point in the trade. Sometimes, breaking the rules makes
sense.  Short/loss
US Dollar
The go long figure in the EUR/USD pair
remains at 1.2331. Staying flat for now. Flat/no bias
Stocks
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This Brazilian metal miner really surprised me
yesterday with a nice up move. I gave back the profits, and am currently
sitting in this one with a loss. Holding shorts here. Short/loss
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CPV |
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Intraday this one is breaking the strong resistance at the round number of 30,
however it keeps failing to close above. I am maintaining my longs and
expecting further upside. Long
[GOOG|GOOG]
Sliding up the go short figure on Google to 277.77. Patiently waiting to enter.
Flat
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Slowly moving downward. Maintaining shorts.Â
Short/profitable
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BHP |
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Billiton remained near even yesterday. Holding longs at this time.Â
Long/profitable
Best wishes in the market!
Dave G
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