Daytrading by Ambush Update for Tuesday January 29, 2008
Portraying trades from 1/28/08
1: MARCH 30 YEAR T BOND

We began the session on a weak note from the stocks and additional bad news from the real estate sector as new home sales fell more than predicted. The deep cuts for banks point to better future earnings in the beleaguered financial sector. In addition, the cuts translate into lower borrowing costs for businesses and consumers, thus promoting more economic activity. Further gains will be hard to come by as the market has already experienced a ginormous run up. I kicked off the day selling 119-30 and was stopped out at -27 as I rolled there as we broke -24. The test at the daily low was too high to get any buys in the mix. We tested above 112-00 and failed but I judged it too late in the day for me to trade it. Ugly day!

The numbers to watch first thing tomorrow are 120-00, 120-16 and 119-16.

2: MARCH CANADIAN DOLLAR

Take a look at the 9970 resistance. That is stout stuff brothers and sisters. Shortly after the open CD moved above 9925 and I bought 9927with a stop at 9917. We moved upward to 9950. I set up a “OB ” play to exit at 9949 if it broke back below 9950 having been above it. Small gain of $220 for my trouble. We never got up to 9975 nor lower 9925. It chopped all around 9950 but never really went anywhere. I backed away.

For tomorrow we’ll stay on our weekend numbers.

3: MARCH SWISS FRANC

As the RTH session dawned we were well on our way from 9160 to 9200. SF made 9205 and started falling like a stone. I caught a sell at 9197 and rode it to near 9185. The triple failure to break 85 was a clear whisper the mommentum had died and we were bound to bounce higher. I exited at 9190 for $87. We spent the balance of the day chopping around the 10 ticks from 9190 to 9180.

We’ll stay with the weekend numbers.

4: MARCH MINI RUSSELL 2000

We saw steep losses in world markets Sunday afternoon and night and I expected to see lots of bodies on the floor by RTH open. Things had calmed by the open however and stocks made a day for themselves finishing in the black near daily highs. It’s going to be all about the weak’s economic reports. Watch the results for clues on direction.

Prior to the RTH open we had a litle excitement around the 682 level. I was literally holding my breath from about 6:30 until the 7:20 RTH open. It had started climbing but not so far it destroyed the setup or the whisper I heard at 682. I bought 687.30 and never looked back until we were above 690. I thought 695 might end it as that price level was very prominent on the chart if you erased the wicks of Thurs and Fri. I set up an “OB” as we went thru 695 by rolling my stop to 694.90. I was stopped there for $760. I bought 695.50 and exited at 699.80 on an “OB” at 700. We made off with $330 on this one. Next I sold 703.50 as 704 was one of our better numbers gleened from the chart. I exited at 695.50 on what I thought was a pretty crummy fill. It was an $800 winner though. I bought 695.50 and exited at 702.80 for $730. I was done.

Continue on with the numbers from the weekend edition. I don’t think $2620 days require much change in the plan.

5: MARCH MINI $5 DOW

I was really committed to doing some trades in the DOW today. I know many of you trade it. It is the best market to trade to test and learn theory and strategies. I always feel I am neglecting it because the payoff is a little light for me.

I was really bummed when I settled in and saw the DOW below 12200. It bottomed out at 12120 about a half hour before RTH open. It started climbing back with a little gusto. I bought 12210 and exited at 12294 for $420. Notice the perfect failure at 12400 near the end of the RTH. We can only hope that’s where it’ll be tomorrow morning.

Stay on the Weekend numbers.

6: FEBRUARY GOLD

Once we saw what was up in the world stock markets there was no doubt in my mind the whispers in Gold today would be made by the bulls. Flight to quality is a live and well in the Gold market. Gold is definitely enjoying its roll as the safe haven of choice.

Lots of economic reports out this weeek could bolster the the economic outlook or put the recession back on the front burner.

Of course since I wrote I wouldn’t attempt the 920/930 channel yet that’s exactly what it did yesterday. We climbed from 920 to 930 in less than 2 hours of RTH trade,

$10 channel for tomorrow with a little better luck. The 920/930 is ready to play now.