Morning Update: 1/27/2012

 

7:51 am…

 

The  market suffered losses today, although in the last half hour they did snap back from the session lows to pare the losses. The day started out with a move to the upside as the ES spiked up to 1330, the highest level reached this year and in this entire rally for two weeks. The NQ reached the highest levels as well at 2475.31. However, they then turned around and came down hard, bounced a few times, and stair-stepped their way lower, and spiked into the low just about a half hour before the close, at which time they snapped back on an apparent short-covering.

I had several trades yesterday…

6C: this was a fade of a possible stopping point. I initially had a tight STOP but realized I needed to give it some more room.  I added to the short position once it got into the trade location I was waiting for took profit at 23 & 47 pips.

NQ: I traded in and out of NQ today to help offset any losses from the 6C short.

CL: I took a CL long that i was stopped out immediately. Another hedge long.

As I write this update to ES has broken from a declining wedge and could test the highs established during RTH, Today being Friday I will take it easy and try to stop trading currencies after 11:00 am est.   News today…. GDP, GDP PRICE INDEX, MICHIGAN CONSUMER SENTIMENT. Will be looking to manage the 6C short and possible trade around that position on the long side.

 

Olof Thomas

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