Tuesday, April 21, 2009

Paper Trade Setup 1: ASX200 short at 3675

Trade: ASX200
Stakes: 1 cfd contract
Risk: 3867 - 3672 = 195 points = $195
Current Capital: $5,310

Chart Signals: Weekly Chart is in downtrend, the candlesticks show down formation, the MACD is turning down, the price is breaking below 50 day MA.

Macro Signals: All possible market stimulus seems to have been priced in - there isn't much more stimulus that can be added in the short term; I think the feds will play a, let's wait and see the response to our stimulus game - and I think the markets may pay that price.

Target exit: I need at least 350 points which is 3322 which my optimal exit being 3250 - I will put trailing stop loss once the trade hits 3322, or exit if there is any macro news to the contrary that may spark a reversal.