Wednesday, July 13, 2011

Sp500 Value Range


Yesterday's Action saw the most volatility in one trading day in global market's I've seen this year. We started off heavily down in the sp500 futures, hitting the 1300 level, before making a fast u-turn, seeing a recovery during the US session to 1320 - almost on zero real catalysts, then a short sell-off as Ireland gets downgraded.

I was heavily short on the euro - which turned into a small loss, which was also compounded by my short trade in sp500 in the value area which got stopped out.

We are sitting squarely in the middle of the trading range - which is the Value area - the strategy here is to get long if it stays above 1310, and short below, whilst adding long exposure on a breakout above 1360 and short exposure below 1260.