Fortunately for the bulls, the Treasury Capital Flows
report showed the US receiving an inflow of roughly
150 billion during November. That might have kept the
concern for the US economic situation in check. With
the Treasury market also apparently expecting a much
softer set of readings from Industrial Production and
Capacity Utilization than were released, it was clear
that the trade has started to assume the worst from
the US numbers. The CPI reading was marginally hotter
than the PPI reading from Tuesday's session, one might
have seen some pressure on Treasuries as a result of a
slight shift in inflationary views. However, energies
and metals were down hard so I doubt that inflation
thoughts played on the market today.
They didn't give me any numbers today. I will add a
sell on a break below 119-00 for tomorrow entertainment.
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2: MARCH CANADIAN DOLLAR
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CDH8 O=9810 HI=9848 LO=9720 CL=9773
We got a little rush on the open that carried prices to 9848. After yesterday's action it was too deja vu to pass up. I tried to sell the failure at 9848 but I was to slow and it fell off quickly enough I did not have a shot at a fill better than 9836/37. I sold 9836. It was a pretty easily managed ride down to 9743. I immediately
rolled my stop down to 9751 using "once broken" theory and was stopped at 9862. I thought that was a tad unfair but nothing really to do about it. Plus, it's kind hard to get too upset when they just punched your ticket for a $740 gain. Just say "thank you" and move on.
I'm probably going to be on the sidelines for a spell until CD builds some southside structure. Play 9800 either way but avoid trades off numbers below there for the time being.
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3: MARCH SWISS FRANC
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SFH8 O=9164 HI=9254 LO=9096 CL=9107
Some softness crept into the SF today. The opening hour was a bit of a challenge and frustration as it tried a potload of times to break 9180 but it just wouldn't let go. Finally. I sold 9173 and exited at 9103, again on a "once broken" play off 9100. This gave us another $912 reward.
We'll add a play at 9100 either way selling any breaks lower or buying break outs higher. Use the lower 7 or 3 as the stop on buys and the higher 3 and 7 on sells.
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4: MARCH MINI RUSSELL 2000
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ERTH8 O=697.40 HI=712.10 LO=692.00 CL=700.80
Stocks initially took off lower but by midday made an impressive recovery I thought. J.P. Morgan and a couple of other lesser lights of the banking showed some earnings numbers that indicate many banks didn't take the cyanide pill in the form of subprime real estate loans.
I began buying 698.50 a bit after 8:15 CST. Russell ran up to 706 and immediately strated to drop. I managed to get out at 704.70 for $620. I tried to sell the break of 704 but was too slow. It went right to 692, one of our adds this morning, and I bought 693.10. I managed an exit at 705.50 on a "once broken" play off 706 for a gain of $1240. I next bought 704.70 and exited at 711.70 on the clear failure at 712 - one of our prefered numbers. This gave us another $700. We might have been able
to sneak in the reciprocal of the last trade selling off the 712 or at least the 708 break and getting out at a "once broken" play at 702.10 worst case. I didn't have the concentration left to make it work so I closed down.
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5: MARCH MINI $5 DOW
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EYMH8 O=12486 HI=12515 LO=12486 CL=12490
A quite strange very narrow range day in the DOW. I didn't have the focus to do 2 indices today so I shined the DOW. No great sacrifice given the results I had otherwise
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6: FEBRUARY GOLD
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GCG8 O=890.60 HI=901.00 LO=875.00 CL=882.00
Given the recent dynamic for Gold and the energies this
was a gimongous correction day. I began the day with a buy at 881.50 which I exited at 891.60 for $1010. I next sold 888.50 and exited at 877.10 on a "once broken" for $1140. There may have been more on the table in a later trade but I was toast by this time ... rich toast, mind you, but toast none the less. This was an extraordinary day; a $6500 day. Sometimes its fun to be a trader.
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The Daily Update is a publication of Daytrading by Ambush
http://www.daytradingbyambush.com
tom.mostlikely@verizon.net
Copyright (c) 2008 daytradingbyambush
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RISK DISCLOSURE!
Trading commodity Futures and options on futures involves
significant risk. You must consult licensed professionals or your own advisors before trading to determine if it is suitable for you.
Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. You must consult your broker or advisor before making any trade to insure current prices, margin requirements and other factors determinant to suitability. By reading this publication
you agree to make no trade relying in whole or in part on the comments of the writers. You agree before doing any trade contained herein to consult your charts and advisors to verify all information and make your own decision.
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those
shown.
In fact, there are frequently sharp differences between hypothetical performance results and actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical
trading record can completely account for the impact of financial risk in actual trading.
For example, the ability to withstand losses or to adhere to particular trading program in spite of trading losses are material points which can also adversely affect actual trading results.
There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
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