I have been trading the XJO200 with CFD's for over a year now and I am getting quite good with it, so I thought I would let you know what I am doing each time I make a trade. This will either continue or I will make a complete fool of myself. Here's to putting them on the chopping block.
After sitting on the sidelines and wishing I had ridden the last wave down from 5600, where I had exited at around 5580 because I thought a significant resistance had been reached at around 5754 and there had been 4 days of rises which are inevitably followed by a pause or a drop, I put my toe in for a long position at 5158 [no kidding] and rode that 400 price rise up.
Then I looked on in diss-belief at most of it fritter away yesterday. Then this morning I got up early to see with the US was doing and it had done the same bloody thing - so time to bail out with around 20% of the intial profit intact and see what today held on the XJO. So far down, good decision.
Note that the last three significant pushes up in both the DOW and the ASX have been clobberd. Note also, that a lot of the 400 increase was probably short selling. Note also price of petrol which will impact on consumer confidence which will impact on company profits.
Gotta figure that the chances of one more Elliot wave leg down is on the cards. Gotta remember not to fight the trend. Which I have done the last couple of times. BUT, the US did hold most of its gains last night, and it may just get on with it for what will probably be another sucker bounce.
The trouble with short positions at the moment is they we have implused so far down.
So, I'm gonna see what today holds on the ASX and maybe dip my toe into the US tonight for what is possibley and even money gamble for another rise.
My general trading demeanour