Slow Down Trending day, Stochastics Down, MACD down --> $620 profits
5 min Emini Nasdaq 100
Hi,
Market is trending downwards and my indicators did not manage to capture that only until mid-day at 13:00... Stochastics was turning down from the overbought region and price bounced off nicely from the moving averages.. Also, MACD turned down and cut the zero-line... All these pointed to a shorting chance.. I shorted 1 contract at 2048 and another 2 more contracts at 2044 when price broke the support line established by the lows of the morning session. I simply held my position until stochastics started to turn up again and I exited at 2035 with $620 profits.
Fundamentals:
The U.S. trade deficit declined during the third quarter to the lowest level in two years, raising hopes that the country's trade troubles could be easing.
The Commerce Department reported Monday that the current account trade deficit fell by 5.5 percent to $178.5 billion in the July-September quarter. That was a better-than-expected showing and the smallest current account imbalance since a $173.4 billion deficit in the third quarter of 2005.
The current account is the most comprehensive measure of trade because it includes not only trade in products and services but also investment flows between countries.
The current account deficit had set all-time highs for five consecutive years but has declined for two consecutive quarters, prompting economists to predict that this year will see the deficit finally start to decline.
"The combination of slower growth in U.S. demand, solid growth in overseas economies and a declining dollar has been pulling the trade deficit lower as exports have outstripped imports," said Nigel Gault, chief U.S. economist at Global Insight.