Sunday, September 9, 2012

Where to from here?

With the bad figure on the Non Farm Payroll on Friday night, the USD tanked against all currencies while the S&P surge in anticipation of QE3 and talk about stimulus by the Chinese government.

I am caught short with some small positions in Euros and S&P futures while I long the Simsci futures. I shorted the Yen futures too at around 1280 level.

Can anyone tell me where the market is heading?

In fact no one would be able to tell where the market is going, I just have to managed my own positions based on risk and money management.

My gut feeling is telling me, when would it be a better time to sell the Euros, Yen, GBP and the S&P?

Of course, it's election year in the US, short the S&P at your own risk.

I am putting in some sell stops for these contracts if it head down south again, wish me good luck.



Unknown said...

Thanks FAT, for posting ur mkt comments and charts. Hope to learn more from you as the mkt unfolds. :)

Chip said...

I agree, the market is irrational right now, but we need to remember it can stay that way for days, or even weeks on end, how fun. LOL

Here is a good post I found on the volatile market we are witness too at the moment.

Fat88Trader said...

It's good that you guys are coming in to share. Yes, definitely the market is irrational and yes, the market might stay that way for a while to squeeze the juice out of those who are caught the wrong way.

coconut said...

fat, would you double your position size on these sell stops, with your original position are in the money?

Fat88Trader said...

I am not so aggressive yet in term of holding positions for the longer term. Don't forget I am a very short term trader for the past 25 years.

Emotionally I am still not there yet to double my position size on these sell stops, probably just add on smaller positions.

coconut said...

thanks fat, don't get me wrong, i'm not suggesting anything. i just want to feel it.

double the size means triple the risk. i know too well. slow is better.

most traders think holding position is dangerous but one can control it by increase or reduce the size or "hedge" it so that our mind does not get blow off.

good luck to your trades.

Unknown said...

Great Charts. Thanks for the technical perspective and the data points. I love to read post like this and will come back soon to read another post.

Day Trading

Fat88Trader said...

Thanks for coming by Steave.