Usually I like trend days, but today I did not get it until it was too late. Maybe I will adapt my rules a bit to deal better with it.
There are days, when good news is bad news and bad news is even worse news Today was one of them.
Early in the morning … after the rally in New York and the breakout in the Dax … Asia fell … main reason the YEN strenghth … Do I hear carry trade unwind???
Then Merill Lynch secured financing as expected. Citibank the same. Markets fell. Citi figures were better than rumoured, but as they still have “nuclear waste” on their balancesheet and the CEO was quoted to “NOT PROMISE ANYTHING”, the markets kept falling. PPI not as bad as feared, Retail sales not HORRENDOUS. It didn’t matter, markets kept falling.
Hypo Real Estate was crashed as they took a small write down on CDOs … confidence lost … cost them around 34% of value! Members of the board bought shares like crazy in the afternoon.
Bears had a field day!
I had the wrong mental set up as I tried to play possible false breaks … but they proved real On 2 trades I had more than 30 points profit EACH(!) and was stopped out. Not a day to be proud of …
Trading days – 26 … Points made -39.0 … Total 378.0 … Average 14.54
Roundturns – Size x 4 … Total 64 … Average 2.46