Markets got slammed yesterday. Dow down 370 points had biggest percentage drop in almost a year. Volatility is here to stay and traders love that. ISM was 2nd worst ever and that sounds like a full blown recession ahead.
Market drop has swung us back into support areas and we will likely go for test of resistance areas. This scenerio should lead us into higher prices for next couple of days as carry trades are also bouncing off 62% retracements of last up move from January 22nd lows. Technicals still paint this as a BEAR MARKET rally and we should stay wide awake.
We have taken two additional trades ( FMCN and Brazil shares ETF EWZ ) in the final minutes of closing yesterday. Busy day ahead and we have all our trades LONG to capitalise the rally.
Good day.
Harry
11:40 AM. We have closed two trades taken in the final minutes of closing yesterday. Please see details here under::
2008 Project MERCEDES .. TRADE # 13: FMCN (Long ..reverse trade of yesterday)
Feb 05, 2008 15:21:14 FMCN Buy Mar 45 Call $ 5.30 .. 2 Contracts
Feb 06, 2008 11:30:23 FMCN Sell Mar 45 Call $ 6.30 .. 2 Contracts
Time: 3 Hours ( Overnight trade )
Return: 18.87 % or $200.00
2008 Project MERCEDES .. TRADE # 14: Brazil Etf EWZ
Feb 05, 2008 15:38:49 EWZ Buy Mar 75 Call $ 4.90 .. 2 Contracts
Feb 06, 2008 11:32:53 EWZ Sell Mar 75 Call $ 5.50 .. 2 Contracts
Time: 3 Hours ( Overnight trade )
Return: 12.24 % or $120.00
Account Value: $ 6,984.00
Stay tuned please.
