Tuesday, November 15, 2011

Waiting for a US Dollar index breakout

Fakeout = 57%, Pullback = 49%

Market is inversely related to the Dollar index but I will post any signals as and when they come. Stay tuned!
The last triangle that I posted last week got filled to the target.

What is happening in the 'Euro' land?

I have no idea. I didn't even read the news, I am not going to. I opened my Euro chart and I see the chart below:

Eur/ USD chart on the daily and hourly timeframe. If you zoom the hourly chart, it is still inside the trendline.

Yesterday we had a sell signal before close. /ES is down 1.3% from the close which is roughly ~ 1% from our signal. When I get a VST signal, I am honestly not looking beyond 1%. If I get lucky I will take it. Otherwise, 75% of my position will be out on a 1% move. The signal has a success rate of over 95%, but yes I have had failures like the 2.5% overnight gap up 3 weeks back against my signal. Prudent as it would seem to me with my VST signals as they are signals in the terminal phase of the move, I would take as much profit as I can off the table and make sure we score a win again. Use premarket trading too, that is why we play SPY. Don't stare at the screen when you see the profits. ST signal is still on a buy. Adios!

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