First this week let's have a look at the XJO [Aussie equivalent of the Dow/S&P/FTSE].
As I was suggesting the other week..in 'is this it' the XJO has been range trading between 6390 and 6230. Well, as you can see it held true to form, briefly poking its head above 6400 for a new 'record' high before heading for the security of the 6230 zone-with a brief dalliance to 6190 before getting back in line...Now here's the thing MR Dow dropped 190+ points on Thursday and Friday was back 160 ish- so the Aussie market 'should' rally on Monday. On my radar screen I see a couple of possibilities- There is a long term RSI-Xover on the short side, probably the first Major signal I have seen to say this might be 'IT'- as there have been a few of these I will give it less weight. You can see the 6230 area was formerly a 'resistance' area and common trading wisdom states that 'support becomes resistance' and vica-versa. So I want to see a couple of decent closes under the 'resistance to be convinced the plunge is 'on'. Now given all that, my man with the 'timing' tricks Tolly Sakellariou, was making a call for a decent fall off the S&P 500 high- and it happened- I was looking at a 15 minute chart when his call went out and took a short position on the XJO at 6336- this worked out nicely the next day as that Dow was down- I placed an exit stop above the fast moving average and was stopped outat 6306 - pity as there was another 100 points in it! Still it worked .
To other matters:
I missed an entry on PBL the other day see the previous post- and in general couldn't find much to arouse my trading interest apart from ROC oil on Friday:
This one met all my criteria:- Lower high/Volume/Strong bar & crossing throught eh WMA, and I took a short position near the close at 3.24- pity I didn't wait 'til right on the bell as it came back 6 cents!
FGL- my only other trade in progress from last week-It went briefly into profit and managed to make its way through the plunges currently down 4 cents- I see no reason to exit- apart from that 'little line of resistance! over 6.60
for more share trading info and wealth creation resources visit www.mymillionairebuddy.com
