Friday

Short Dax 5130

Post a Comment June 5, 2009 – 2:15 pm |   | Permalink |  Print This Post |

Shorted $5/point of Dax at 5130 as our indicators suggest a down day Friday and possibly into Monday before heading for higher highs. We are in the midst of a rally but some pullbacks are expected - markets need to move up and down for market makers to profit. We aim to close this when we make a decent return (intraday or Monday) for a quick buck (we hope). India made a new high today, unbelievable. 4600 is the expected resistance so we hope to short Monday if it maintains this level - unlikely given our expected pullback in US/Europe which should drag Asia down next week.

We also opened a short AUD/GBP mini at 0.50 (close to 13 year high, and whenever these levels are reached, taking a small position will usually be profitable: the key is to take the profit when you see it as this is a trade against fundamentals hence any profit may be transient). We were actually looking into an investment property in the UK - prices of property have dropped 30% in London (50% non-London), and the Sterling is at 13 year low against the AUD: together that would give us a significant discount! With the Olympics scheduled for 2012 in London, prices will be supported to an extent. In 3 years, the bear market may have turned by then.

Even as we type, the Dax is dropping (now 5050)! ($400/10 minutes is not bad rates!). We will close at 5030 if it gets there and take a $500 profit. Thank you Mr Market.