Cowabunga System Daily Update- 01/17/06

Main Trend

Current Trend= Down and Up

From 11:00 pm ET to 3:00 am ET I was only looking for short trades. The rest of the day I was only looking for long trades.

Today’s Surf

There was a moving average crossover to the upside at 11:00 pm ET. All the indicators matched up but the only thing holding me back was the fact that my overall trend had changed to bearish, which means I was only looking for short trades at the time. The upward move from 11:00 pm ET to 3:00 am ET caused my main trend to shift from down to up, and from then on I was only looking for long trades. There was another crossover at 8:15 am ET but I did not enter because MACD was positive and it was also right before the PPI report. So even though we missed out on some good opportunities we must stay patient and stick to the rules of the system. If you were able to stay out then you should be proud of yourself for staying disciplined. There will always be plenty of opportunities!

Trade Result: +0 Pips