Merry Christmas traders!
This is the last day of trading before Christmas and then we have a day off on Boxing Day so will be back on Tuesday.
I have been keeping an eye on the MDax recently, Germany’s second stock market for medium sized companies, because it has just reached record highs and passed the 22,000 mark. Investors this year would have enjoyed double digit growth and those who invested in February would have done very well indeed. This does not necessarily mean that the regular Dax will also follow in the path of the US equity markets (and the MDax) and begin printing All Time Highs, but it is encouraging to see some of the European markets keeping pace.
Yesterday afternoon I sent a message out of the premium DaxTrader channel (on Telegram, find out how to join here) commenting on an idea to sell at 11465 (sell limit) or sell 11415 (sell stop) price didn’t really get much of a look in at those levels for during the remainder of the session, but today those levels would have worked out. The session today started with a rally higher, to wipe out all the traders who were short, that had placed their stop loss just above the previous highs, nice bit of manipulation by the institutions there, that’s why they make plenty of money. Once they cleared out the retail shorts and trapped further traders who went long, believing it to be a breakout, it turned around to target 11400. We have now bounced from around 11405 and are looking for a balance point.
This morning I took a long with a 12 point stop, which was stopped out. Yesterday I took two longs, which were both stopped out for a total of 21 points, so the last two days have cost me 33 points or so. But that’s trading, you won’t catch every move and you won’t win every trade, it’s a patience game and so long as you keep good discipline and find good reward:risk setups, you’ll get the results.
I am finding the break below 11430 interesting (although it’s being tested from the underside now), because as you’ll probably remember, this was stubborn resistance previously. Have we pressed into this zone from above and are now coiling up like a spring ready to bounce higher, or was that move this morning strong enough to crash through the floor and begin the move lower. The day before Christmas eve is probably not the best day to trade this, so let’s just see how it plays out.
No charts today, no support & resistance