Wednesday, April 20, 2011

Getting it Right

The above chart is of the AUD/USD of the past few days, and 2 trades completed, and one trade currently in play. The red stars indicated the period of the USD downgrade, and the blue circles are last night's recovery in the markets. The green trade is tonight's trade, in which a very strong resistence line has been broken, and it looks like it is lights out from here.

So yesterday I closed off my AUD, EUR, gold, SP500 shorts. All had good gains except the gold short. The US downgrade, saw only a short period of losses, another fakeout to the downside, is likely to see shorts popped, and a continued flow into risk on sentiment.

I managed to not just close out AUD, EUR but actually go long, respectively with 20,000 each.

During the day I closed out both positions near their resistance lines, then I sat back to see how the levels resolve.

When I saw the AUD clearly and easily break the 1.06, I reloaded my position for 30,000 and will keep stops 20 pips below.

I've also bought some BPTY - partygaming with the regulatory issues now playing to a net positive; the earnings this qtr if good, will see the stock trade above 2.00.