06 Jan This Week’s Swing Trading Round Up And Next Week Preview; 6th January 2013
Despite being a short one, this Week was a great start to the Year and racked up quite a few profits across day trades and the EUR:AUD short term swing trade taken on 1st January. After a few Weeks away from the Markets I’m normally a little apprehensive when jumping straight back in to trading, yet the first Week following a break has consistently been a good one for me. Could be luck, but it’s happened so often over the last few Years that I have to consider it could be a benefit of having a break away from the Markets once in a while.
On New Years day I analysed a number of markets and found quite a few FX pairs looking ripe for swing trades, some of which I detailed in the previous post which can be found here. In particular EUR:AUD looked great for an immediate trade, so I entered almost as soon as markets opened, and the trade very quickly hit my initial target where half the position was covered, followed the very next day by a waterfall straight to my ultimate target where the 2nd half of the trade was covered for a 240 pip profit.
Going forward I’m not really sure what the next trade will be. Notably HSBC and others have been making incredibly bearish noises about GBP with a recommendation to short GBP against the Euro. This will be something to keep an eye on as technical’s do appear to be supporting their call.
For Indices it can be quite difficult to trade confidently on technicals alone because day to day sentiment plays such a large part in their movements whilst moves on low volumes, which are common nowadays, can never be trusted 100%. That said, I can’t see anything on the chart that will stop DOW achieving 13,500 over the next few days so I may look for day trade opportunities to buy dips and I’ll be watching 13,500 for possible resistance. Unlikely there’s any swing trades lined up here just yet, but I do enjoy day trading DOW.
Since inception of the blog I’m yet to post details of any stocks I’d like to invest in. Note that I tend not to trade stocks in the same way as Indices or FX, but generally buy them outright and hold them for longer periods of time. I’ve just received payment for a stock purchase from 2011, Corin Group who’ve accepted a take-over bid, so will now be looking for new companies to invest in. So far on the short list taken from suggestions of posters on my ADVFN forum, I like Glaxo Smithkline, Kenmore, Greencore, Glenmore and Ferrexpo so you may see me posting analysis on one of these shortly.
In the meantime, I hope you’ve had a good trading Week. If the Year continues the way the first Week started, it’s sure to be a great one!