March 24, 2011
- in Uncategorized by schooloftrade
When the US Dollar Index Correlation Fails
830am est
– News came out mixed
– Jobs and durable come out as expected, so the market continues to search for direction
– Dollar is dropping off support, so we look for buying opportunities on the markets we trade
900am est
– We grab the 21range wave short on crude oil, but I chased after it, got in late and took a small loss on the trade
– The second trade on gold was a winner, not much movement, still very slow, but a winner
– We now see the dollar holding support at 76.00 and this now possibly changes the opinion of the rest of the day
– If the dollar begins to RISE, we now need to look at the SELL side as the high % side
– This is not set in stone, right now the dollar needs to PROVE to us where its headed next.
910am est
– The biggest challenge we have is within ourselves this morning
– We haven’t been given the opportunity to take many trades this week
– Its up to US to keep focused on following the rules
– We see momentum overbought and oversold at the WORST possible times right now
– It seems that speed is always slow
– But we have to wait for the best times, when speed is increasing, when we see BIG MONEY on the tape, and when momentum lines up.
930am est
– The dollar index has now broken the resistance overhead and now rising full steam ahead
– The low volume is still a concern
– But this moving dollar is definitely a good sign
– Hopefully this rising dollar will give us selling opportunities on the markets we trade
1100am est
– Took a fast track winner for the day today
– I took my final trade on the gold this morning and after seeing a ton of speed, all buyers, and the dollar dropping, I moved my target above where I would usually place it to try and see if the gold would move more.
– I learned a VALUABLE lesson this morning on this trade. When times are slow, take your money and run!
– Getting greedy is only when we have consistent speed
– We’re concerned now that 830am FRIDAY GDP news is now going to have people leaving the morning session early
– Beware the end of the morning coming on earlier than expected
Click Here To Review Our Automated Trading Results From This Morning
