We began the session on a weak note from the stocks and additional
bad news from the real estate sector as new home sales fell more
than predicted. The deep cuts for banks point to better future
earnings in the beleaguered financial sector. In addition, the cuts
translate into lower borrowing costs for businesses and consumers,
thus promoting more economic activity. Further gains will be hard to
come by as the market has already experienced a ginormous run up.
I kicked off the day selling 119-30 and was stopped out at -27 as
I rolled there as we broke -24. The test at the daily low was too
high to get any buys in the mix. We tested above 112-00 and failed
but I judged it too late in the day for me to trade it. Ugly day!
The numbers to watch first thing tomorrow are 120-00, 120-16 and
119-16.
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2: MARCH CANADIAN DOLLAR
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CDH8 O=9903 HI=9967 LO=9872 CL=9946
Take a look at the 9970 resistance. That is stout stuff brothers
and sisters. Shortly after the open CD moved above 9925 and I
bought 9927with a stop at 9917. We moved upward to 9950. I set
up a "OB " play to exit at 9949 if it broke back below 9950 having
been above it. Small gain of $220 for my trouble. We never got up
to 9975 nor lower 9925. It chopped all around 9950 but never really
went anywhere. I backed away.
For tomorrow we'll stay on our weekend numbers.
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3: MARCH SWISS FRANC
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SFH8 O=9126 HI=9208 LO=9125 CL=9186
As the RTH session dawned we were well on our way from 9160
to 9200. SF made 9205 and started falling like a stone. I caught
a sell at 9197 and rode it to near 9185. The triple failure to break
85 was a clear whisper the mommentum had died and we were
bound to bounce higher. I exited at 9190 for $87. We spent the
balance of the day chopping around the 10 ticks from 9190 to 9180.
We'll stay with the weekend numbers.
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4: MARCH MINI RUSSELL 2000
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ERTH8 O=688.80 HI=704.80 LO=675.90 CL=703.80
We saw steep losses in world markets Sunday afternoon and night
and I expected to see lots of bodies on the floor by RTH open.
Things had calmed by the open however and stocks made a day for
themselves finishing in the black near daily highs. It's going to be
all about the weak's economic reports. Watch the results for clues
on direction.
Prior to the RTH open we had a litle excitement around the 682
level. I was literally holding my breath from about 6:30 until the
7:20 RTH open. It had started climbing but not so far it destroyed
the setup or the whisper I heard at 682. I bought 687.30 and never
looked back until we were above 690. I thought 695 might end it
as that price level was very prominent on the chart if you erased
the wicks of Thurs and Fri. I set up an "OB" as we went thru 695
by rolling my stop to 694.90. I was stopped there for $760. I bought
695.50 and exited at 699.80 on an "OB" at 700. We made off with
$330 on this one. Next I sold 703.50 as 704 was one of our better
numbers gleened from the chart. I exited at 695.50 on what I
thought was a pretty crummy fill. It was an $800 winner though.
I bought 695.50 and exited at 702.80 for $730. I was done.
Continue on with the numbers from the weekend edition. I don't
think $2620 days require much change in the plan.
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5: MARCH MINI $5 DOW
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EYMH8 O=12241 HI=12399 LO=12083 CL=12377
I was really committed to doing some trades in the DOW today. I
know many of you trade it. It is the best market to trade to test
and learn theory and strategies. I always feel I am neglecting it
because the payoff is a little light for me.
I was really bummed when I settled in and saw the DOW below
12200. It bottomed out at 12120 about a half hour before RTH
open. It started climbing back with a little gusto. I bought 12210
and exited at 12294 for $420. Notice the perfect failure at
12400 near the end of the RTH. We can only hope that's where
it'll be tomorrow morning.
Stay on the Weekend numbers.
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6: FEBRUARY GOLD
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GCG8 O=912.50 HI=929.80 LO=913.70 CL=927.10
Once we saw what was up in the world stock markets there was no
doubt in my mind the whispers in Gold today would be made by the
bulls. Flight to quality is a live and well in the Gold market. Gold
is definitely enjoying its roll as the safe haven of choice.
Lots of economic reports out this weeek could bolster the the
economic outlook or put the recession back on the front burner.
Of course since I wrote I wouldn't attempt the 920/930 channel
yet that's exactly what it did yesterday. We climbed from 920 to
930 in less than 2 hours of RTH trade,
$10 channel for tomorrow with a little better luck. The 920/930
is ready to play now.
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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
========================================================
RISK DISCLOSURE!
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