Weekly review 9/4/2010

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

In last weeks review, we made this statement at the beginning of the review:   “We had a very good week until Thursday when the market began to move with very little volume, without any tendency and with strong up and down oscillations which made trading like a trip to the casino.”

Well, this past week, the same thing happened.  We did expect it as it was the first week of the month, it was full of macroeconomic reports, it was also the last week of summer and this Monday is a US Holiday (Labor Day).  Given all of these factors, it is normal that we had difficult sessions.   And, if we add the fact volumes were really poor, it was truly not a good week to be in the market, just as we expected.  We hope that, starting on Tuesday, we finally start to see a bit of freshness.  In any case, we continue to be in the middle of a clear lateral ever since the end of April as the Sp has been in a range of a bit more than 100 points, as you can see in the chart below.

 As you can see in the following Emini chart, since last 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

Let’s first review the Dax technique were we gained 144.5 points since July 20th but this week we only operated in two sessions and we lost 16 points due to some pretty bad luck.  As you can see, in a bit over one month, we have made and excellent gain of 3,621.50€ per contract.

 Tuesday’s session was a shame, as we saw, as we lost 64 points by hitting a stop of 0.5 points when we would have made 42 points and this week, with two operations, we would have registered a gain of 90 points.  But, we lacked a little bit of luck and, on top if it all, it was a double trade.  On Thursday, we didn’t trade because the Sp was erratic but we would have made 29 points.  Now let’s see what would have happened on Friday.

The opening gap on Friday was 7 points with an opening price of 6097 while the previous day’s close was 6104.  Therefore, our technique prescribes not trading.

MiniSP

With regards to the MiniSP, here are our numbers for the past 5 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 7 sessions.  We hope that starting on Tuesday, we will begin to trade normally once again.

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

 FOREX

These were our operations for this past week:

Have a great weekend!