Weekly review 9/12/2010

Greetings everyone,

As we do every week, we are going to review our trades over the last week and we will start our review this week with futures and stocks.

FUTURES & STOCKS

To start, we want to share the following data with you:

-          Ftsee volume is 43% below the 10 session average.

-          Dax volume is 39% below the 10 session average.

-          Cac France volume is 51% below the 10 session average.

-          Nyse volume is 34% below the 3 month average.

-          Nasdaq volume is 17% below the 3 month average.

This past week was identical to the previous one.  We expected more volume and movement after the US holiday this past Monday but there was none possible due to the change in contracts from September to December for the SP.  Except for the movements you can observe in the below chart which are due to macroeconomic reports, we have only seen long laterals for the Sp that do not allow us to operate as they signify movements of 1 to 3 minutes of a couple points only to later go lateral for half an hour.  These market conditions made it impossible to be productive and, therefore, we didn’t trade the Sp this past week.

 If you remember, the previous week was identical:  The previous Tuesday the Sp went from 1040 to 1104 at the close on Friday.  But take a look at how it rose, due to 4 macroeconomic reports: Tuesday from 1040 to 1052; Wednesday from 1060 to 1080; Thursday from 1080 to 1085 and Friday from 1088 to 1100.  As you can see, they were really difficult sessions to operate in as there was practically no movement during the session except that related to the macroeconomic reports.

 Dax

And what happened with the Dax? The same as the Sp:  We traded only once, on Friday, in 5 sessions, as it was the only one with an opening gap.

We analyzed last year’s data from these dates and, last September, we would have been able to trade everyday except for 6 sessions but it was the month with the least number of signals, until this year.  Take a look at Friday’s session: There was an upward gap at the opening, then it was covered, then a long lateral during which it was impossible to do anything and we hit the 3 point stop.  This was the only Dax operation this past week:  +3 points and 75 € made per contract. 

To summarize our Dax performance to date, we have a profit of 147.5 points since we started and this week we executed one trade for a gain of 3 points. In 8 weeks, we have made an excellent gain of 3,696.50€ per contract.  

MiniSP

With regards to the MiniSP, here are our numbers for the past 6 weeks.  We executed 81 positive operations against only 4 negative ones for a total profit of 142.75 points ($7,137.50 per Sp contract).

If you take under consideration that we have made these gains in August, when volumes are low, we consider these to be very good results but the problem we have now is that since Thursday, August 26th, the market has completely stopped and we only saw volatility when macroeconomic reports were announced.  This is why we have not made any trades for the MiniSp future for the past 11 sessions.  We hope that starting on Monday, we will begin to trade normally once again.

Week	Positive	Negative	SP Points
July 26-30	10	1	19
August 2-6	18	1	27.5
August 9-13	13	0	15.75
August 16-20	26	1	47.5
August 23-27	14	1	33
TOTAL	81	4	142.75

LAST WAVE

For the Last Wave Technique, we also hope the market starts to move normally so we can begin to send trading signals once again. 

FOREX

These were our operations for this past week:

What a week!  The numbers were not bad: 5 positive operations versus 1 negative one for a total gain of +27 Pips.  But, it could have been even better as there were at least 2 operations that missed their targets of 50 pips by only a couple of pips, then hitting the stops profit of +10 only to later reach their original target.

 It is very complicated to find market movements which are clean and with a tendency of at least 50 pips.  In addition, for Wednesday’s USA morning operation, we had to apply a stop profit as an exception as we were 20 pips from the target which, in the end, saved us from ending up with a loss. This is not the norm but we continue to make gains and to protect our capital which is what counts.

Have a great weekend!