Cowabunga System Daily Update: 04/06/07

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Main Trend

Current Trend= The trend remained down the entire day.

Today I only looked for short trades.

Today’s Surf

7:00 am ET – There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD went from positive to negative. This was a valid entry. The entry was at the close of the candle which was at 9706 with a stop at the most recent swing high which was at 9713. Since I was only 6 pips away from the nearest 00 level I decided to set that as my initial target with the intention to trail my stop and go for the next target at 9650.

7:30 am ET– My initial target at 9700 is hit and I trail my stop to the high of that candle which was at 9705 and set my next target for 9650.

8:30 am ET– My 2nd target at 9650 was hit and the candle made a clean break of that level. So instead of taking profit I trailed my stop to 9650 and decided to try and go for 9600 as my third target.

8:45 am ET– Unfortunately the price stops moving in my direction and retraces up to stop me out at 9650.

Trade Result: +56 pips; R-Multiple= 8.00

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