Friday

Trading The Dax

Post a Comment May 1, 2009 – 8:29 am |   | Permalink |  Print This Post |

We took profits at 4755, booking $200 from our short Dax from last night. We still have our 4700 position open, but wanted to lighten up before trading resumes tonight. The German Dax is closed for Maifest (May Day Celebrations), but Futures are open for trading. So it will be a traders fest, potentially ignoring any fundamentals and guided by the Dow for the night. Our indicators suggest a big move is coming either tonight or Monday. Short term indicators suggest markets may recover tonight - hence our defensive position by staying underleveraged. The charts look like a pull back is due any time - it is typical for peaks to take time to evolve, whilst troughs are usually rapid and acute in movements.

We also look to take a long position in Gold, and look to get in as close to 870 as possible.

For the night, we will only trade if markets make a big move. Despite our indicators suggesting an up night, we are NOT keen to open additional long positions (we are happy with our exposure via our Agriculture ETF and Natural Gas ETF and our portfolio of stocks).

Dax chart

Screenshot of our trade in our personal portfolio

Taking Small Profits to stay Light - www.theinflationist.com