April 8th...good day to trade

It seems to be my lot lately to stand by and see the trades and not be able to make them...for a number of reasons today. Perhaps I should just sit back and not see what is going on in the market until I can actually make the trades....

That would lead to taking trades that are not timed the best. I feel that I am better served to keep my finger on the pulse even if it is only to record where my entries and exits would have been. At least I know what the results would have been and I keep my edge alive.

So, here is the chart and the general trade setups that I witnessed on the Global Gold Index. As always I would be trading HGU and HGD for the long and short plays respectively:


So it would have been a very good day to have been trading today.

I am starting to get more of a feel for the 200sma setups with respect to other important support and resistance levels and how the 30 and 50 smas seem to help as confirming or negating indicators. I don't use MACD, RSI, Stochastic or even volume any more...well, volume a bit, but between the charted lines and the streaming market depth quotes I get all the information that I need to make the calls on these trades. Generally I have stopped trying to call the peaks and troughs as they are not as probable as a good momentum 200sma cross with correspondingly good looking support.

This leads me to investigating more widespread trading in other indices. If the 200 sma is the major indicator for these seemingly few lucrative trades then perhaps it is worth considering paying attention to some simultaneous sector trades...of course that assumes that my backtesting shows similar qualities and that I can get the other distractions down.

But I am getting ahead of myself here, I must concentrate on nailing this first Gold index trading into a consistent profit vehicle first. I'll still do the back testing of other indices though, that is fun to check out anyway for future reference.

Jeff.