Cowabunga System Daily Update: 05/31/07

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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

2:00 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 9750 with a stop at the most recent swing high which was at 9771. Since I was 50 pips away from the nearest 00 level, I set my target for 9700.

6:45 am ET- Unfortunately I was stopped out of my trade.

9:45 am ET- This was a news candle (Chicago PMI). Therefore I did not enter even though we had a valid signal.

Trade Result: -21 pips ; R-Multiple= -1.00

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  • philtong

    can u tell us which news reports that u would stay out even u have a valid signal? which reports would u consider significant enough that it’d be too risky to trade before the reports published? i know NFP is certainly one of them..
    thx

  • philtong

    can u tell us which news reports that u would stay out even u have a valid signal? which reports would u consider significant enough that it’d be too risky to trade before the reports published? i know NFP is certainly one of them..
    thx

  • kemkamal

    Hi ,
    I’m wondering on the Main trend ( 4hr ) chart , what period do u use..? I’m using 70 – 100 is tthat ok ? What is ideal.

    for your trade on the 05/31/07 , seem like a very valid entry.? how come u were stopped out..? I mean , if all the indicators a right what can go wrong..?

    tqs very much..

  • kemkamal

    Hi ,
    I’m wondering on the Main trend ( 4hr ) chart , what period do u use..? I’m using 70 – 100 is tthat ok ? What is ideal.

    for your trade on the 05/31/07 , seem like a very valid entry.? how come u were stopped out..? I mean , if all the indicators a right what can go wrong..?

    tqs very much..

  • PipSurfer

    phil- if I am in a trade, I hold onto it except when there are BIG news events like NFP or interest rate statements. However, if a news report (even if it is less significant) causes a big move, and as a result produces a signal, I am more hesitant to take it since the movement I see is most likely a “knee-jerk” reaction from the market.

    Kem- Just because we get a signal doesn’t mean it will always be right. The best we can do in trading is give ourselves the best chances of winning.

  • PipSurfer

    phil- if I am in a trade, I hold onto it except when there are BIG news events like NFP or interest rate statements. However, if a news report (even if it is less significant) causes a big move, and as a result produces a signal, I am more hesitant to take it since the movement I see is most likely a “knee-jerk” reaction from the market.

    Kem- Just because we get a signal doesn’t mean it will always be right. The best we can do in trading is give ourselves the best chances of winning.