Trades closed, taken profits

Just to update that I have now closed my short positions and have taken nice profits. I closed these trades because it seems that they are having trouble going lower. There seems to be buying power coming in.

It is important to remember that fundamentally stocks are still bullish and that this decline was simply a much needed correction. Interest rates are still low and inflation is still high. If we see a strong upmove from this area in the near future then it is probably safe to get long on the pullback.

Large declines in stocks and a strong short on GBPJPY

With regards to the previous GBPJPY trade, I hit my first profit target and closed out half the trade. The second target wasn't hit so I closed out the remainder when I saw signs of weakness and realised we were not going to see a test for the top. Overall success of that trade: mediocre profit.

However, today is looking to be a good day. I have been short DAX at 9478, short FTSE at 6611 and short GBPJPY at 170.91. As of writing this post we are currently in profit nicely. You can view the charts below. Targets are the green lines.

  

With regards to the DAX and FTSE, I shorted because I saw the pullback weakening when price started reaching the 50% retracement line on the fibonnaci tool. My long term view for the stocks was that we needed to see a significant correction because stocks were so overvalued and this gave the an excellent opportunity to get short after the initial decline.

I shorted GBPJPY when I saw the upmove weaken when it failed to break the resistance line (red line). I am targetting the 100 on the fibonnaci tool because that would signify a full retracement of the upmove. If we go even lower than that then I may hold the trade for longer. If I see any significant weakness in the selling then I will take profit.

That's all for now, happy trading!

Total massacre...but there is hope!

Hi guys sorry I haven't been active recently on here but I've been a bit busy.

So when I last posted I was long USD/JPY, short FTSE and DAX. It hasn't been a total massacre but I did take small losses on all of them. Overall I am still up in profit from my first FTSE trade so all is well. I attribute those losses to the fact that they were all countertrend trades. I got greedy and tried to win more my trading the corrections as well. Clearly there is still strength here so it is better to approach it from the long side.

Additionally, I have been long GBP/JPY since 17/01/14 and I added to my position on 20/01/14. With the recent  jobs data that came out today, there has been a large spike up in GBP across the board so currently I am profiting nicely from this trade. You can see the chart below:

The green lines show my profit targets. Price is approaching the first target very soon so I will be take off some profit there. The top target is 174.60 which is just below the previous high. I believe that if it passes through the first target strongly then we will see a test of the previous high.

This is it for now. Good luck trading!

Long USD/JPY, Short FTSE, Short DAX

Hi guys

I have just opened trades:

Long USD/JPY at 104.80

Short FTSE100 at 6725.30

Short DAX at 9419.80

I think we are going to be seeing USD strength across the board. I'll be looking to short GBPUSD and EURUSD as well when I believe the time is right. They have risen quite a lot near the end of last year and I believe they are overbought.

In regards to the FTSE, it has been moving sideways for many days now after a large uptrend. This could be a period of distribution and so I have decided to get short. Similar story in the DAX.

Of course, we can only wait and see if my trades will prove to be fruitful.

Heavy selling across the board

As expected, we have seen a lot of selling pressure coming in on thursday. Some people are saying that its due to low liquidity as many traders are still on holiday. However, I think that stocks and some currency pairs like GBPUSD, EURUSD and USDJPY were too high and were in for a reversal soon anyway.

I am going to look to sell these pairs and equity indices, like FTSE 100, on pullbacks to resistance. I will post the trades when I open them.

Happy trading and let's hope for much opportunity in 2014!