October 27, 2011
Russell Momentum Strategy & Dollar Index helps us hit our daily trading goal
Today we are anxious to see the reaction after the EU Leaders Summit which was rumored to have made some good progress.
Like most things, the REAL test is in the markets. Will the volume be high? We will have to wait and see.
845am EST
We are not seeing much market personality after the major news at 830am EST. jobless claims and GDP came out within expectations so we can assume the market had priced it in.
855am EST
Dollar index is making new lower-lows causing things to chop higher, making it hard to buy at the highs.
If the dollar index bounces off this 75.626 support we will sell the highs, if it keep going lower we need to wait to buy 21range pullbacks.
The key today will be our ability to time our entries using the dollar index correlation along with the price structure on the markets we trade.
I don’t want to buy the highs, so I need to wait to buy a pullback with this dollar index dropping tick by tick.
Questions from the trade room
Where do the best trades come from?
– Buy the lows
– Selling the highs
– Using the 13 and 21 range charts
o Fewer trades use the 21 and 34
o More trades (more losses) use the 13, 8, and 4 range
