Wednesday, January 11, 2012

The markets are pure speculation right now

Sometimes, when analyzing if one should take a long or a short trade, fundamentals will play a role in the decision making process. But in today's markets I would venture affirming that ONLY technicals matter. Of course, there are still a small number of markets where the rule of supply and demand is important to take into consideration (like natgas for example) but for the vast majority, no need to lose your time reading long reports on supply/demand because only the short-term direction of the market matters. Crude oil is the most obvious example of this situation as today showed after the bearish inventories report from EIA led to a... rise in the price of crude. At the end of the pit session price was back to where it was prior to the EIA release. If this is not trading on technicals, I don't know what it is. Anyway, my results were relatively good again today ending in the green with a few good trades on natgas and t-notes (for a change). Net result +$871 trading 2 contracts (commissions included). Details below.

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