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Today we were stopped out on the last Gold contract of our key pivot short to complete the trade. The final result of the trade was a gain of $1100. So far the first 3 gold key pivot trades have gained a total of $7,200. For a table of prior trades, current trades and results please see the ‘Trade rsults’ link at the top of the page that brings you yo this link http://tradersbase.com/test
days ago I told readers about the ‘W’ formation in the USD/JPY forex pair. That trade has worked out great, I wanted to show you a chart of the formation along with fib extentions to find targets for the trade. In general I will place my orders in front of the target to make sure I get filled. The ‘W’ formation is an easy one to spot. The entry comes after a flag type pullback and breakout, the targets are found by using fib extensions, see the chart below.
Past couple days I have been talking about Dollar strength. The two places I wanted to be were EUR/USD and USD/JPY, these trades have been working out well. In the charts below you can see the EUR just getting no love the past few days and the USD/JPY moving up and looks like it may be breaking out of the classic ‘W’ formation. I would recommend taking some profits off the table here but No reason to take the whole position off, both these trades should continue the move.
| Date entered | Entry | Exit 1 | Exit 2 | Original stop | Adjusted stop | P/L | Account Balance |
| 5/11/08 | n/a | n/a | n/a | n/a | n/a | n/a | $20,000 |
| 5/12/08 | (S)878.50 | 868.50* | n/a | 883.50 | 871.50* | $1700 | $21,700 |
| 5/22/08 | (S)917.00 | 909.00* | n/a | 936 | 881.00* | $4400 | $26,100 |
Now that the day is over and gold has taken a beating I want to take our stop down another 10 points to 881.00 to lock in more gains. If it continues to waterfall down we will lock in more. I will update you on any changes.
Well gold is down another $20 this morning. I want to step in and tighen our stop to 891.00 to lock in profits on this play. Worst we can do on our second contract now is walk away with a gain of $2600 for a total gain of $3500. Anything extra from here is a bonus.
Well we got stopped on our final NQ contract. The first contract was a gain of $660 and the second a gain of $180. I would of liked to catch a bigger move but the nasdaq happened to be the strongest of the big 3 indicies. We still walk away from the trade winners!
on our Gold trade we still have the second contract open, I want to move the stop down on gold to 925, the worst we can do on this trade is break even. Second target is still open, I see some things happening with the YEN that could cause the dollar to rally hard and gold to fall fast, We don’t want to limit ourselves on gains.
USD/YEN chart
Cire is out and about so I’m gonna run a quick update for him.
On the NQ play, we’re moving the remaining stop to 1 tick above high of today.
Remember this is a free trade so if you’re stop’s in you can’t screw it up period. 
Gold as you know was almost stopped out, but thanks to Cires laser guided stop you made $. Target 1 was hit, we’re leaving the stop on the 2nd half where it is until further notice.
if you refer to my post yesterday( http://tradersbase.com/daily-review/dow-breaks-trend-others-do-not/index.html ) I talked about a couple markets holding trend lines that should break down this week. Well they all broke except for the VIX. Dow broke down yesterday and today the S&P broke down and the transports broke down. To my suprise the VIX did break it’s down trend but did not close above it. This means to me that the fear is not baked into this market yet and we could have more room to fall. The markets should find a little support here as we approach the 50ema and a piror breakout level that has acted as support a couple times. I would like to get some charts up but it’s really late. So look for a little bounce or some chop but I do expect more selling.
Our first key pivot play in the gold market was completed today. Last night we moved our stop down to lock in profits, our original stop has not yet been hit but so far it seems that moving the stop down was the right idea. Gold had a strong day today and took out our second contract for a gain of $700 to make a total profit of $1700 for the trade. That puts the Gold Key Pivot play portfolio at $21,700. Stay tuned for more Key pivot plays, I think there may be a set up soon in the S&P market and we can kick off the S&P portfolio.
