RE: SIMSCI 09-June-2006:Potential short: Lost trade

SIMSCI futures

Before SG market went for lunch break, I have decided to close my SIMSCI short position with a loss at 275.7 even though planned trailing stop was at 276.2. There were signals that contributed to this exit decision. From 9-min chart of SIMSCI, a positive divergence was observed, and it was , in fact, getting stronger. I was very uncomfortable to see positive divergence when having a open short position.

Nikkei225 Futures

Another strong reason to exit short position was from Nikkei225 Futures. Again, a positive divergence was observed. That was a scary scene. It was preparing to run up. In the event that intraday upward movement started, SIMSCI futures is likely to have a gap up in the afternoon session.

I might be missing out potential profit, but, safety in the market is my objective. Fast decision made. One lost trade with -0.6 loss.

After trade analysis:

SIMSCI Futures

In fact, my short position was not supposed to be established. This can be proven when doing analysis retrospectively. Before Short position was established, from 9 min chart, a positive divergence was formed. This is a sign of strength, and no short position should be established.

Comments

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Bryan2006-06-09 20:14:00 UTC

Perhaps you can find trading opportunity to long HSI futures.

Bryan2006-06-09 20:14:00 UTC

Perhaps you can find trading opportunity to long HSI futures.

Gav2006-06-09 23:04:00 UTC

Hi Bryan, Thanks. I do notice HSI. I guess same thing happen to hangseng, a gap up after lunch break. Anyway, I have long SIMSCI again. Another profitable day for me. Though small profit. Have a good weekend.

Gav2006-06-09 23:04:00 UTC

RE: SIMSCI 09-June-2006:Potential short: Lost trade

Comments

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