Wednesday, 18 July 2012

Mind the Gap?

There is a newspaper article by Hugh Hendry, hedge fund manager, that is being promoted by CNBC Europe. You can see it here. The title: Bad Things Are Going to Happen, is in line with my underlying opinion. Whether you call this the other shoe dropping or there is never just one cockroach, I have written for a few months that I don't think we are out of the woods by any means. The U.S. is still the consumer engine of the world and until the number of people in jobs increases - real unemployment is about 16% - the world economies are at risk. Third world economies of the BRIC countries are faltering.

But, it's all about timing. I trade my one chart and the trend I see on it. With my longer term trades, I try and look 14 to 21 days out but that is not alwayd possible and I'm always mindful of what I believe is a real probability.

I saw what looked like a nice top yesterday in the ES. By "top", I mean a top in my 0.75 point adjusted Renko chart. My FavFib resistence held. So when I had an opportunity to go short, I made it my trade of the day. I sold the ES with 100% of my size. So far, as you can see from the pic, I haven't been able to do more than scale out once. We'll see if there is more profit in this trade.

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