Weekly review 10/11/2010

Greetings everyone,

We will start our review with a market overview. 

Last week, we saw a slight downward trend in the majority of markets but, this week, we’ve seen a slight upward trend within this market which is quite SPECIAL, as we have commented over the last few weeks.  Here is current data to support our claim:

• The least number of Open Interest in the Ibex in the last few years.
• The lowest monthly volume for September since 1999.
• The largest gain in September for the SP since 1939
• Volumes way below the monthly averages of the last several months which were very poor in all markets.
• The Fed purchasing in the market this past Tuesday and Wednesday.
• The HFS in the US literally destroying values with movements more typical of OTC.

With these indicators in mind, take a look at the following chart of the last 20 sessions for the Dax to see how the market is now.

• Lacking tendency
• Strong intraday movements

FUTURES & STOCKS: Dax

Now we will review the Dax technique which we trade via our Trading Room at 2am EST (8am GMT +1).  For the year, we have made 23 positive trades versus 5 negative ones for a success rate of 82.15%.  The last 11 operations have been positive for a gain of 231 points (5,775 € per contract).

This past week, our technique indicated only one trade from which we gained 125 Euros per contract.  It was a shame we didn’t trade on Thursday and Friday as well, even though the gap were small, as our technique would have worked.

 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. 

We hope the market begins to move a bit more with expirations in October and US business financial reports.

FOREX

These were our operations this past week:

We had 3 positive operations versus 4 negative ones for a loss of -28 Pips. There isn’t much new about the market.  We continue with intra day movements which are quite flat.  Now we’ll summarize what was most interesting for the week.