Tuesday, December 16, 2008

Sitting it out again

No clear trade presented yesterday either. I had called for the 890 to short and we stalled at the 885. It was difficult to trade this one as you had to wait for your confirmation and by the time that was in the trade carried quite a bit more risk.

How to trade this?
Again difficult to make a decision here. We have little volume and we are not trading decisivly into any direction. When looking at it from the mid term trend perspective we are creating higher lows - however as our 50dma keeps declining our peaks are declining as well. Looking at the daily chart and plotting the 50dma you can see how we are unable to break this. We started at the 920 and as the ma declines so do our peaks. At the moment the 50dma is at 905. If you see any rally towards this point you definitly have a great short at your door stop.

Again, with volume this low and holidays coming wait with your money and start trading in the new year.

No comments:

Post a Comment