Friday 6 May 2011

Indecision Day

Yesterday, Thursday, was an indecision day in the ES and Euro and probably in other markets as well. We've had a neutral day in the Profiles with breakouts in both directions as the bulls and the bears fight it out. Exchanges and brokers are reacting and tightening margins. Lots of liquidation in commodities by hedge funds and individuals alike. It's 6am London time as I write this part of the blog and the stock market is sideways.

I'm watching Silver like a hawk. It really got hammered after it had gone into orbit and almost escaped gravity at nearly $50 per ounce. Average cost of production is only 20% of that, I think, so the producers must have been selling their hearts out to the speculators. Hunt Brothers must be still crying if they are alive. Nonetheless, paper money is losing its value as inflation roars in spite of the denial by most governments, so maybe Silver is something I'll buy once the weak hands are out. I was out of Gold a long time ago, sadly.

I was trading the DAX and ES today. Flo went long the ES a couple minutes before the number, after being stopped out at break even of the last third of the previous long. I reduced my size for the number but wasn't really stressed as traders have a lot more to worry about today than the jobs numbers.


2 comments:

  1. Hi EL,

    How do you get filled on all your limit orders priced at the close of the signal bar? At least a third of the time there's no overlap (i.e. the next bar doesn't trade back through the limit order price) so my orders don't get filled. Is there a trick to getting filled on those limit orders?

    Thanks.

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  2. Anon 20:44, there are blog posts here about this. Basically, with a range bar you know where it will complete and its a matter of putting a stop limit order there. Sometimes the bar then reverses into the other direction and I take a small hit but if I've read the order flow right then I'm fine. I sometimes enter way before the bar completes, depending on context.

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