BP is assuming the role of captain unpredictable at the moment. I don’t like the way this moves, and I think I will remove it from the list. The spread from CMC is killing me with this one – as it seems to do with all the UK stocks. If you’re short term then you need a tight spread, and CMCs are very tight – until you open an order ticket to open a position, then it shoots off either side then returns to normal if you don’t take a position.
Elsewhere RBS continues to make new daily highs, but does not allow an opening for my new strategy. Tesco is a nice chart to look at, but it’s slow with big ranging candlesticks so not easy to get right. Tesco has been shouting at me to enter long this morning, and I haven’t – not sure why, but it’s now up 6p from the double bottom earlier in the day. It is pushing up against the 100EMA at the moment, so a potential short in the works here.
I had a look at the Volkswagen chart and that looks nice and clean so I might include that later this week. BAY is still the nicest chart to trade in Europe I think – very predictable through all the time frames. At the moment on the 15min chart it’s shaping up for an entry long in the next hour or so. Siemens looking nice today, Nokia and Total have a lot of bad/no data today which is annoying.
770 is the key price for Tullow – 3 times in the past 3 days its struck and moved up, it’s forming a descending wedge on the 5min chart, and I’m waiting for a breakout either side for entry – but I’m bullish.
As always I’m waiting for 2:30 for the US markets to open, so I can actually make some trades.
I missed out on the easiest £320 in my life today by closing a short on Fannie Mae way way way too quickly. I closed within 50 seconds because of an instant reverse which led to a loss above my ‘new strategy’ threshold. £40 loss would have been £320 profit if I had the plums to stick with it. That’s happened way too often the past 3 days and that is something I really need to work on if I want to be successful. By the way I also closed at the highest possible exit after my original entry.
Anyway I just wanted to focus on something that seems to be the easiest thing to profit on: morning gaps. Stocks always gravitate back to the gap, or the high from the previous day. I see it all the time, particularly in the US financials at the moment. A gap up and a short rally is brought to an end sharply, and then the sell-off continues through the day, where at some point the gap is closed. Like I mentioned earlier to
A chart or two (including Fannie Mae)
I mentioned earlier in the day that I liked how Tesco was shaping up. It’s a very clean cut stock in terms of it’s movements, and today was a nice textbook example of support and resistance. Given the state of oil and the financials, a stock like Tesco is poised nicely, because everybody needs to eat. Also, Tesco do buy one get one free and Asda don’t so I’m sold on that.
The Volkswagen chart is also very crisp, and is another welcomed addition to my Euro hitlist. It’s goodbye to Vodafone and potentially RBS. There is a lot of money to be made with RBS, but it’s the kind of stock that gives confirmation to go one way – and then unlike every other stock in the world – it reverses straight away. There is no safe position in a stock like that.
As for tomorrow I will not be trading until 2:30pm. I’m beginning to realise that although the Euro stocks are quite nice to trade – they don’t do anything worthwhile until the US market news is out and after the US markets have opened. The FTSE is a total joke in terms of independence.