The Wallace Trading Method

Discussion in 'Journals' started by Wallace, Apr 30, 2012.

  1. added: Nat Gas

    don't think session analysis, correct or incorrect has a place with B&H trading, so
    will leave it out. although this change to B&H trading is something I'm still working
    on, s'ok at the moment, everything's working together, just wonder how it'll be when
    there's corrections going on and everything's going in different directions

    the JPY trade was right on a fibo level - I found out later but is finally rising again
    similar with the Crude - it's on a fibo

    Gold looks like it's formed an AB reversal base, which I recognized before the trade
    was entered, but I've a longer timeline on it and the higher tfs still point down
    the question is tho, how much of a loss to risk and stay in the trade ? especially as
    the price could easily pop back up to 1620 again
    I'll sit with the trade as a 'lesson' and see what happens. I could also enter a Buy as
    in Canada a B and S can be entered on the same pair and cfds. not sure if I'd trade
    a gold cfd, there's 3 different futures contracts, I haven't yet worked out the different
    costs between them and the cfd, so don't know yet which is the best choice, gold's
    cfd has a much higher margin requirement than the SPX500


    For Thursday March 7/13

    - DXUS$: Buy ~ 81.5850 ~ Hold
    AUSUSD: Sell ~ 1.03182 ~ Hold
    - EURUD: Sell ~ 1.31896 ~ Hold
    AUSUSD: Sell ~ 1.03182 ~ Hold
    GBPUSD: Sell ~ 1.51595 ~ Hold
    NZDUSD: Sell ~ 0.83775 ~ Hold
    USDCAD: Buy ~ 1.02137 ~ Hold
    USDCHF: Buy ~ 0.92946 ~ Hold
    -USDJPY: Buy ~ 93.4140 ~ Hold
    - - Gold: Sell ~ 1573.69 ~ Hold
    CrudeOil: Sell ~ 89.8200 ~ Hold
    Nat Gas: Sell ~ 34.7000 ~ Hold
    - - DJIA: Buy ~ 14059.0 ~ Hold
    NASDAQ: Buy ~ 2746.73 ~ Hold
    Rus2000: Buy ~ 912.000 ~ Hold
    S&P 500: Buy ~ 1518.13 ~ Hold

    3:40pm pst
     
    #91     Mar 6, 2013
  2. For Friday March 8/13

    omitting the trades list, if a trade takes place I'll just post it

    writing a mini report for the weekend – observations on the 'ch- ch- ch- changes'

    . . . . . . . . . . . . . . . . . . . . . . Prior . . . . Consensus . . . Consensus Range
    Nonfarm Payrolls - M/M change 157,000 . . . 171,000 . . . . 130,000 to 225,000
    Unemployment Rate - Level . . . 7.9% . . . . . 7.8% . . . . . . . 7.7 % to 7.9 %

    Jim Santelli's observation on CNBC was that a weaker than expected number will
    be read as positive for the stock markets - Fed's spending continues

    my observation is that with the payroll tax changes, the employed are not so quick to
    stop working, or give up their job, have dismissed thinking about trying to change jobs
    and this has become a universal attitude with the US employed
    it means there are fewer vacancies, fewer job opportunities, fewer hirings
    I think the number will come in low, or low to middle, and the rate 'may', uptick

    as far as the euro and $'s concerned; the $'s been stopped at what I think of as
    an interim fibo level for the past 4 sessions, it could be the top of its range for the
    present, but I'm stuck on seeing it hit the 83 - a dangerous attitude to have

    so my attitude to the euro is I may add another Sell, up until I go to bed, or after the
    NFP release, and if that's the case, I'll also add another Sell to the AUDUSD, but
    the high side of the euro could go into the 1.3180s, ending the week there . . .
    4:33pm pst
     
    #92     Mar 7, 2013
  3. all trades closed except for 3 losing trades, and back to session analysis —
    see attached for details

    For Monday March 11/13

    the DX$'s H was 82.945 . the D is up to a couple of 61s and a couple of time targets
    but the C was 82.731 at the ml of a sec, which all suggest it'll keep going up
    Wednesday the EU Parliament votes on the EU budget, if the budget is voted down
    don't know but presume the news would be negative
    together then more downside for the euro to . . . there's an area around 2.90 , 2.87-5
    where there might be a bounce. the price could stay up for an hour, maybe the first
    4H, but watch it as it may break down from the open. all in all, Sell
    3:10am pst
     
    #93     Mar 10, 2013
  4. For Tuesday March 12/13

    I don't believe a base has formed and a new rally is beginning, rather a correction
    and feeding into the Budget vote on Wednesday, something similar to last week

    so far the price's corrected to a 50 , there's a couple of 61s in the 1.3060s area then
    above that the gl at 1.3080 , but I don't think it'll get that high famous last words
    what I think may happen is the run up, then a decline to the NY open down to -
    depends how high it gets but say 1.3020s , then a rally again into the close

    don't know yet what time the vote will be announced, similar here to the NFP, even if
    the budget's voted for doesn't mean the price won't sell off, there's no good reason
    for it to rally and just another eu negative if the vote's against the budget

    Thursday sees the ECB Monthly Bulletin, EU employment and the beginning of the
    EU Economic Summit

    continuing rally would I think have to break thru the 1.3080 and 1.31
    so a possible Buy, Sell, Buy this session and Sell, for or on Wednesday
    3:45pm pst
     
    #94     Mar 11, 2013
  5. For Wednesday March 13/13

    this is a tough correction to try and interpret much less second guess
    a resolution to reject the budget adopted on 7 March representing the vast majority
    of MEPs is itself now seeing some rejection, so the vote may be a 'yes - But' which
    may or may not be interpreted as negative; announcement time not known

    the EU Summit is Thursday and Friday and the way my analysis is going I think it
    may be an up session today then a renewal of the downside

    I think any rally would end on the eu open, downside first ? 1.3010ish ? into the
    1.2990s ? upside, 1.3032 , 1.3045 ? then in theory the Sell, or, the vote's a positive
    result and there's a rally and a close up day
    4:35pm pst
     
    #95     Mar 12, 2013
  6. the budget was voted down but not out I think, negotiations to follow

    For Thursday March 14/13

    the price finally broke down yesterday rather than on Monday as I'd thought, but not
    as low as I'd expected, better late than never

    what I'm thinking is the price goes down again and then turns up on Friday. not a lot
    of downside, rally up a bit, the 1.2985 area till the eu open again then down

    the weekly hasn't had a wave break yet and next week could provide one, but the
    price could continue down on Friday which makes sense, rounds the week off for a
    fresh start Monday; and the price could continue declining today without a rally

    how low ? 1.2865 ? but also much lower, 1.2660-30 , and again, there's no reason
    why the price shouldn't continue down next week
    upside from here ? back up to 1.3060-+ ? that could happen too

    however, given that the $ has popped the 83 , I'm inclined to think it will be travelling
    higher on its way to 83.5 , and so will go with the continued euro Sell
    3:30pm pst
     
    #96     Mar 13, 2013
  7. For Friday March 15/13

    'the weekly hasn't had a wave break yet' - should have stuck with that and not brought
    the $ into it, although . . .

    the $ did make a new H yesterday, the euro did make a new low; the $ has made
    what looks like a reversal formation, the euro has made what appears to be a base

    I thought we might have been out of the complexity but it's continuing. remaining in
    the correction could see the euro travel up to the 1.3060 area, into the 1.31s area
    and still be correcting. to become a correction wave on the weekly means closing
    up next Friday at a higher level still, a correction that's part of the whole downtrend

    so the price should continue up and remain up. I don't know there's anything that's
    expected from the EU Summit and that the present price action is only 'waiting and
    see' action and will resume the downtrend in this session, later in the day

    looking for an up close whatever that price may be, or we will notice that the price is
    declining and trade accordingly
    4:06pm pst
     
    #97     Mar 14, 2013
  8. For Monday March 18/13

    what I'm thinking is, first, I don't know what the price is going to do, but working with
    the idea that the $ upside hasn't finished yet

    aside from the Flash, Zews and US stuff the main fundamental is the FOMC, and
    while we do not expect any increase in the FFR, we focus on what the Chairman
    may say, may not say, will repeat but re-phrased, leave unsaid, etc, etc, etc

    so I have no price targets but expect a sideways churn, possibly, until Wednesday
    when I expect/think the euro price wil resume its decline —
    or do I have that arse backwards ?
    1:30pm pst
     
    #98     Mar 17, 2013
  9. att: http://www.xe.com/currencycharts/?from=EUR&to=USD chart of the euro dump
    on Sunday/Monday
    first Sunday I didn't look at XE prior to writing the analysis, not that it'd have made
    a difference. what's amazing is how the price dropped about 140 pips and then went
    back up by the same amount before the permanent decline began again
    have to wonder if one should keep Any open positions over weekends, although the
    a long term Sell of the euro from Feb 1 would have benefitted

    For Tuesday March 19/13

    the price has recovered getting on for 61% of the - chasm. the 60 has at present the
    appearance of an H&S and if that's what the formation is, suggests another decline
    of the price back possibly to the lows below 1.29 where it might, form a base; one
    time target I have on that is midmoring eu time, 3am/6am NA time, begining a rally
    from that low

    another interpretation is the price drops and holds 1.2918 then begins a rally which
    could begin on the next 4H bar

    and what about the price based during the first two Sun/Mon 4H bars, has made a
    primary rally and correction, and has begun to rally again which will ? close the gap

    the price could also drop thru the LL 1.2881 and keep declining

    the Weekly did get its wave break with the Friday close and imo's done enough for
    it to continue down and break the 1.26

    it's difficult to for me to believe the price will rally back up and 'close the gap', a gap
    that's the largest I'm aware of for the euro, particularly since we're still waiting on
    further possible consequences and repercussions of the action the Cypriot govern-
    ment is undertaking, and an action that as yet remains unresolved . . .
    4:40pm pst
     
    #99     Mar 18, 2013
  10. For Wednesday March 20/13

    price bases during these first 2 ? hours - if it hasn't already, then a rally ?
    not a lot of upside, 1.29-2920 , probably a Lot of sideways movement until the
    FOMC then the decline, , , or could the price decline to the FOMC and then rally ?

    price could of course continue declining; thinking Fri or Mon for 1.26 area with a
    break around the 1.2770s
    3:55pm pst
     
    #100     Mar 19, 2013