Tuesday, August 18, 2009

Trade 55 + 56 - UpDownUpDown, UPUPUP, DOWN DOWN DOWN DOWWWWWWWWWWWN??

Enough Rubbish, Get your money out, and protect ya neck!
US overnight action lead to ASX not budging an inch = today's once in a lifetime opportunity to get out when things are still in the GREEN.

Shorted asx200 3@4352.5 (trade 55) and asx200 3@4360 (trade 56)
1/ Overnight US tanked 2.5% and the ASX seems to only be down 1% - possibility for a trending down day
2/ at a level of resistence at 4360
3/ this will be a 2 day to 1 week view - as I am timing my entry in the 5 minute chart, but actually testing out the possible selloff in the US again tonight.
4/ Stops will be placed at 4410, which will be taken out easily if US market goes above 1000 tonight. Exit is at least 4260 - hoping that I will be able to put a trailing stop loss on this position (if I go to NZ beforehand)

This trade is definitely more themed based, than based on pure technicals - thus my stop losses in this exercise are much wider than my usual 10-20 point stop losses.