Markets Rally On Fed News, Loaded Up My Short Gun

March 18th, 2009

First, did everyone notice how bad treasuries got killed today? Just look on the right side of this page under Live Market Quotes TNX. Now, in the spirit of making this blog a genuine display of my trading I can tell you honestly that I’ve had much better days than this one. Granted I didn’t lose enough money to make me scared by any means. But we did have a bunch of shorts with very tight leashes that got stopped out today – albeit at small losses but losses nevertheless. So in a sense it felt like we were getting stopped out of everything left and right. Of course - as I have mentioned in the past - we did have a few longs that helped protect us overall.

 

Now, I may sound like a broken record – surprising right - but I’ll sound like a prophet later on when the markets do what I’m expecting. Today we neared 800 on very strong volume. Everything from GOLD, FUTURES, and FOREX was going crazy – but only up until around 3pm when we started to see things give back their gains. Just look at the EUR/USD’s gains. Notice that once it broke above resistance at the Fib retracement level in purple, it ran right up to it’s Fib fan level in blue. Prime example of quickly moving from areas of support to resistance!

 

eur

 

Anyone who thinks we can continue this momentum forever – or even through next week – without seeing a major correction and pull-back is crazy. As such I have loaded up the short gun pretty heavily late this afternoon – per member alerts. Many of these are going to take a week or two to show 20%+ profits but the opportunities right now are amazing. Below is just one short I’m very interested in. If you remember, it’s actually our old friend MET – remember the long we made over 37% (and wish we would have held onto into the 110% profit range).

 

met2

 

I promise there will be a trading video tonight. I got caught up in a coaching session last night with another member that went fairly late. But, we have too much to go over together to miss out tonight. It’s going to be very important to watch!

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