Emini Trading Update – Tuesday 16 Oct 2012 (4:43)
Very ordinary trading by yours truly. Was fighting the trend but that’s OK. No damage done just a break-even day. Over-thinking instead of going with the flow.
When you’re trying to play a possible change in trend it’s important to recognize that you could be early. So when the move doesn’t play out as you expect – get out and keep your losses small.
But Mike S. nailed it today:
“Barry, the first trade I took was a sim trade on those gorgeous pro bars on the 4500T chart, off the open that showed accumulation by the big boys. Then, later in the day, when everyone was giving up on the Bulls, I took that pullback to end of trend, again on the 4500T chart.
Wanted 5 points, came one tick shy so settled for 3.75 as it started to pull off. I didn’t start the trade with a 4 point stop, I used 2 because I figured this had to work right away or I didn’t want to be in it anymore so it was still excellent. Anyway, thanks again.”
Links of the day …
Nice piece by John Mauldin. He’s right, the usual rules don’t apply once we hit debt saturation: We’re Headed For An Economic Black Hole.
One of the factors Mauldin doesn’t mention is in the new Europe, people can freely move about. And when times get tough, they leave. 2% of the Irish population left Ireland last year! And 1% of the Spanish population left Spain. And guess who leaves – those with skills and who pay the taxes. Which just makes the whole situation worse.
Things haven’t hit the fan (yet) in France. But the new President is doing his best to preemptively make the productive class leave by raising taxes. They’ll just move offshore, Francois – set up business in Ireland (it’s happening).
As you can tell, I’m no fan of Francois Hollande, President of France. He’s a career politician with absolutely no real-world (i.e. business) experience, none. Having studied politics at the Paris Institute of Political Studies, he went straight to being an assistant to François Mitterrand and working his way up the Socialist Party ladder.
Obviously forgot to read “Atlas Shrugged” on the way.
Good luck with your Emini trading.