Tuesday, August 2, 2011

PMI flushing the toilet, and shaking out all the Longs


So yesterday's trading session started off very well, banking some coin in sp500, AUD positions. However I got greedy in my portfolio exposure adding CFDS on a euro/usd setup on the hourly, which got flushed out 250 pips in a matter of 1 hour as the US ISM figures come in 50.7 down from 50.9 last month and way below the 54 figure that the market was expecting. This compounded the downgraded growth figures of last Friday.

Today's crazy volatility saw the sp500 take a huge turnaround, from being up 20 points in the futures to being down 15 points at the session's lows. These are the volatile trading conditions that may break me before I get to the end of 5000 trades if I don't stick to my risk exposures and management in my overall portfolio.