Friday, July 3, 2009

Trade 20: Asx200 short

Ok, overnight payroll figures worse than expected (should've seen it coming) and Obama saying it will take months to recover (way to crash confidence when the only thing keeping afloat the market is greenshoot stories and investor confidence).

I was looking to short any signs of strength all day today mainly on the asx200. There was an intraday high at 3825 ish level, so I setup a short at that price, and got filled in the last hour of trading. There is a downtrend lineand oversold levels indicating on the MACD.
stop loss zone will be 3845-3850. price target 3770 at least. Might use a trailing stop loss given the negative sentiment over the last 2 trading sessions.

the ASX looks to be forming a head and shoulders pattern, and I'm hoping this will complete and we'll see at least a 3600 levels within the next few weeks.