Friday, October 1, 2010
Oct. 1, 2010 AM Update
This has really turned out to be a somewhat unconventional Friday trading session. Instead of plateaus and intermittent profit-taking, there has continued to be a huge surge to the upside.
We opened fairly high above yesterday's low (>90 pips). Which was a good sign this uptrend was to continue into today. There was been a strict adherence to the 100 EMA as far as touches and bounces are concerned. If you went long at the open @ "113.884" you'd be up >35 pips (3x + our 10 pips daily TP). Remember, moving averages are the basic, banal math. Don't bet against the math, or you'll get burned. If PA is trending above a moving average, it will continue to do so until it crosses below.
All in all, this has been a great Friday with lots of volume. I wouldn't stay in any trades over the weekend, as there is a lot of uncertainty concerning austerity measures both in America (QE 2.0, credit unions being bailed out) and Europe at the moment. You really don't want to be caught in a trade if there is a huge drop over the weekend.
Good luck trading and have a great weekend everyone!
- Should have gone long @ open "113.884" and played the 100 EMA. Good for 10+ pips.
- Always be mindful of the moving averages. Where is PA in relation to an individual moving average (MA). This is how we gauge trends and trend strength.
- Take a break for the weekend. Open trades are susceptible to huge weekend swings that can hit SLs and ruin an otherwise excellent trading week.