Cowabunga System Daily Update: Friday, 05/04/07

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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

2:30 am ET– There was a moving average for a short trade. RSI was less than 50, stochastics were trending down and MACD was positive and losing value. This was a valid entry. The entry was at the close of the candle which was at 9865 with a stop at the most recent swing high at 9878. Since I was 15 pips away from the nearest 50 level I decided to put my target at 9850.

3:00 am ET– Unfortunately I was stopped out of my trade

3:15 am ET– There was a moving average for a short trade. RSI was less than 50, stochastics were trending down and MACD was positive and losing value. This was a valid entry. The entry was at the close of the candle which was at 9866 with a stop at the most recent swing high at 9887. Since I was 16 pips away from the nearest 50 level I could put my target at 9850. However, since my stop was wider on this one, I could also go for the same amount of pips I was risking so that I could have at least a 1:1 reward to risk ratio. In this case, I was risking 21 pips which put my target at 9845.

3:45 am ET– My target is hit. Price doesn’t make a clean break so I take my final target.

5:15 am ET– I did not take this trade because MACD was negative

8:15 am ET– I did not take this trade because it was right before the big NFP report.

Trade Result: -13 +21= +8 pips ; R-Multiple= -1.00; 1.00

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