FXP and the Market Decline

Discussion in 'Stock picks and trading strategies' started by Albert0373, Jun 19, 2008.

  1. Albert0373

    Albert0373 forum leader won weekly contest 8x won sept/07 simulator won feb/09 simulator won july/08 simulator won oct/07 simulator won june/08 simulator

    Traded this many times in the past few months and I love it as a trader and as a hedger. Formed a nice doji yesterday, possibly indicating a move upwards, I'll be looking forward to adding some shares. It looks to be trading in a channel right now and is bouncing off the lower resistance. The INDU looks to easily drop below 12000 and FXP and other ultrashorts are a great way to trade this market, TCG can elaborate more on this with his predicted market bottom/reversal. As always, be cautious and on your toes as the Chinese economy is volatile :) Looking for at least 90 on FXP, good luck.

    [​IMG]
     
    Last edited: Jun 19, 2008
    john_for_u80 likes this.
  2. Albert0373

    Albert0373 forum leader won weekly contest 8x won sept/07 simulator won feb/09 simulator won july/08 simulator won oct/07 simulator won june/08 simulator

    DXD is an ultrashort of the DJI (DJI falls x points, DXD rises 2x points).


    [​IMG]


    From Mar to May, DXD has been trading in a falling wedge and broke out thru the upper resistance level around May 19th and began to trade in a nicely formed channel as indicated. From the R/S lines drawn, it seems DXD may have a bounce somewhere around 59.50-60.00 and pull back to it's support level.

    Applying this to the overall market, it seems it will decline a bit in the next few days and will recover some, then continue falling as DXD bounces around in its channel.

    As for why I didn't use DDM, the Ultra Dow30 ETF, I was already looking at DXD's chart and started annotating it, looking at DDM you see the same thing, the stock is trading in a channel but sloping downwards.

    As always, just my opinion, be cautious in this market. :)




    On topic..

    FXP is looking great a few hours before market open today, last close was at 77.26 and bid/ask is at 79.65x83.90; still looking forward to my target of $90
     
  3. Albert0373

    Albert0373 forum leader won weekly contest 8x won sept/07 simulator won feb/09 simulator won july/08 simulator won oct/07 simulator won june/08 simulator

    Very nice setup on the 1min chart, a breakout over 82.00 resistance sends it to ~83 as expected, a perfect daytrade opportunity if I wasn't holding onto it still :)


    [​IMG]
     
  4. Albert0373

    Albert0373 forum leader won weekly contest 8x won sept/07 simulator won feb/09 simulator won july/08 simulator won oct/07 simulator won june/08 simulator

    I love it!! Closed at 84.90 +9.89%

    :)
     
  5. john_for_u80

    john_for_u80 Active Member

    FXP- Nice ultra short china!
     
  6. Albert0373

    Albert0373 forum leader won weekly contest 8x won sept/07 simulator won feb/09 simulator won july/08 simulator won oct/07 simulator won june/08 simulator

    DXD touched its upper resistance level as I stated, a intraday high of 59.87...if all goes according to plan, it should retract a bit over a period of 2-4 days to 57.00 imo. I'd expect DXD to form a gravestone doji on Monday.

    Applying that to market, we should see a small move upwards next week then after that...all aboard the ultrashorts!! :)
     
  7. Riddicks

    Riddicks Member won weekly contest 2x

    Good Find Albert. Still got your goal of $90 in mind? Maybe I should look for a pull back on Monday on this one, what do you think?
     
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  8. Albert0373

    Albert0373 forum leader won weekly contest 8x won sept/07 simulator won feb/09 simulator won july/08 simulator won oct/07 simulator won june/08 simulator

    Trade the channel :)

    [​IMG]
     
  9. Technical Alchemist

    Technical Alchemist forum leader won penny contest 13x won weekly contest 12x

    Great posts. Both look appealing in this market.

    Kudos.
     
  10. Albert0373

    Albert0373 forum leader won weekly contest 8x won sept/07 simulator won feb/09 simulator won july/08 simulator won oct/07 simulator won june/08 simulator

    Much appreciated :)

    Chinese markets closed just barely red, not sure if we'll be seeing that 'bounce' we were expecting today. That being said, I'm highly bearish right now on the Chinese economy in the next few weeks and I believe FXP to be a great play, possibly even testing it's all-time highs. Just noticed a cup and handle pattern was formed during these past few months, setting up just right. Trade the charts/news and be careful in this market, things could take a sharp turn.
     
    Last edited: Jun 23, 2008
  11. Albert0373

    Albert0373 forum leader won weekly contest 8x won sept/07 simulator won feb/09 simulator won july/08 simulator won oct/07 simulator won june/08 simulator

  12. Albert0373

    Albert0373 forum leader won weekly contest 8x won sept/07 simulator won feb/09 simulator won july/08 simulator won oct/07 simulator won june/08 simulator

    Looks like FXP may open red, I need to sell CHU which I've been holding way too long in hopes of a recovery, kind of ironic when I have a bullish view on FXP. I may add onto FXP with this opportunity with the CHU funds freed up.
     
  13. Albert0373

    Albert0373 forum leader won weekly contest 8x won sept/07 simulator won feb/09 simulator won july/08 simulator won oct/07 simulator won june/08 simulator

    HSI down 258.94pts -1.14%, I added to FXP yesterday on the dip, looking good to go this morning. :)
     
  14. Albert0373

    Albert0373 forum leader won weekly contest 8x won sept/07 simulator won feb/09 simulator won july/08 simulator won oct/07 simulator won june/08 simulator

    FXP touched the lower support of the channel today, let's see now if it bounces :)
     
  15. talaat

    talaat New Member

    Thanks for the posts! I'm in at 79.30
    T
     
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  16. Technical Alchemist

    Technical Alchemist forum leader won penny contest 13x won weekly contest 12x

    Been watching this one too. Got my limit buy in a little lower than the close.

    Good luck to all!
     
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  17. Albert0373

    Albert0373 forum leader won weekly contest 8x won sept/07 simulator won feb/09 simulator won july/08 simulator won oct/07 simulator won june/08 simulator

    81.90x82.88 8am EST

    Good entries ^
     
  18. Albert0373

    Albert0373 forum leader won weekly contest 8x won sept/07 simulator won feb/09 simulator won july/08 simulator won oct/07 simulator won june/08 simulator

    83.40x83.50 8:15am EST

    You guys did well, look for more imo. :)

    If this is really the bounce I'm looking for off the lower support, we're moving past 90 soon.

    GL.
     
  19. AntonellaB

    AntonellaB New Member

    85.63 @ 12:14pm
     
  20. Albert0373

    Albert0373 forum leader won weekly contest 8x won sept/07 simulator won feb/09 simulator won july/08 simulator won oct/07 simulator won june/08 simulator

    Nice close at 86.95 :)

    What a horrible day for longs everywhere...
     

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