Diary of a Financier

From the Trading Desk: Trade Reconciliation (Week of August 8)

In Capital Markets, Trading Desk on Fri 12 Aug 2011 at 20:07

This week’s Trade Reconciliation tracks another brilliant streak of spot-on timing in Capital Markets. I know, I know, stay humble. Risk management and capital preservation are my first reflexes. I’m hardly a Star Wars fan, but in the words of Han Solo, “Don’t get cocky, kid.”

You’ll notice my latest StockTwits update on SPX. Basically:

We’ll probably rally beyond 1180 1st resistance today, which leaves 1215 as the ceiling for this short-term rally.

Look at the long-term (monthly) chart. It shows a steady, secular erosion in buyers’ interest and momentum in the S&P.

Here’s what I’m looking at:

SP/ daily

SP/ monthly

To conclude a week of tactical trading, here’s my reconciliation:

  • After this mkt shakes out, I’m going to accumulate $FSLRon the cheap btwn 88-100. Just one of many names on my shopping list.

  • Covered $EWI short at 13.70 for 13.63pc gain. Don’t want to leave the position open over the wkend. $ITALY
  • According to $ES_F, $SPX will pass 1st restce at 1180 today. I can see the ST rally ending at 1215 restce, almost 3pc north of here.
  • Is $JAPAN stalling under the weight of a robust JPY? If no more BOJ Yentervention, I’ll sell $EWJ, which beat SPY by 6pc since I bought
  • Here comes the “Ephemeral Rally.” I’m covering nmy remaining charts today prolly. When rally comes, I’ll sell my longs into it. $SPX at 1147
  • Somehow, mkts keep getting nuttier, whipsaw day. Covered $HYG up 0.71pc and $XLF up 6.58pc this afternoon.
  • After “ephemeral” bounce off 1st sppt 1150, $SPX falls to 2nd sppt 1118, then bounces again. That’s last, critical snag before air pocket.
  • As expected, $ES_F bounced off 1150, waiting for $SPX to turn as it’s groping lower to 1150. http://stk.ly/ouLal3

–Romeo

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  1. […] the relapse that I had expected.  SPX found resistance at 1205 (1208 intraday), just shy of the 1215 I targeted.  As a result, I was a bit reactive to the mid-week downward reversal.  (I […]

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