Saturday, June 23, 2012

Sold the Bounce Friday

Sold the bounce.

I decided to sell the bounce on Friday.  Not as much profit as I wanted (or had prior to Friday), but I'll take it.  


My scoring system is proving to be quite interesting.  It makes it easy to see when things are getting out of hand.  You can see in the picture above how everything was very very red the day before the large drop in the market.  That would have been the ideal place to take profits.  Hind sight being 20/20 I should have recognized this from the internal numbers that go into the overall score.  Although I don't post them, they are also color coded on my spreadsheet and on 20 Jun there were a lot of pink and red numbers all over the place.  Good to know for next time!


Just for grins, I applied the scoring system to the EUR/USD.  Interestingly, the Euro looks ready to pop up a bit from the 4 hr chart.  The Daily is less optimistic.  With our markets tied to the Euro (generally speaking) it is something worth watching.

The RumWave is still high, so I'm anticipating further declines next week.  We shall see!  Happy Trading!


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