6/4/13 Market Update

Guys and Gals,
I feel this is the best way for me to track, blog, create a journey, teach, etc. for my strategy and for you to learn.

Uptrending Markets

/ES, /NQ, /ZS, /NKD,

Downtrending Markets

/GC, /SI, /ZC, /6A, /6B, /6C, /6N, /6J, /6S, /RB, /HO, /ZB, /ZN, /SB, /CT, /KC, /LBS, /LE

Nontrending Markets

/PA, /PL, /HG, /ZW, /CL, /CC, /NG

In defense, some of these markets are trending more than others, and the "nontrending markets" could have arguments for others also...this is just how I see the market and the current slope of the 50SMA.  One exercise I have learned to do is to look back 50 days or so and see what bars will be taken off or replaced...this will give you a good example of if a possible trend change could be coming or if the trend should stay up or down for the foreseeable future.

In terms of diversification, I like to keep position sizes small and try not to have too many open positions with markets that tend to correlate strongly.  Once again, this is all person preference, but do not have 80% of your open positions in currencies.


Long
/NQ - This looks like a decent place to enter as the fast line is oversold and it would take a great sell of to change the trend, would not even opposed to adding another contract and selling out of that one on a rally.
 /OJ - Probably a little late to the party but still think entry here is fine, trend is solid at moment.  Breakout was weak in nature which is not good to see but is bull flagging on top of base, see nothing wrong yet...also fast line is going lower at a slow rate, should start to turn up on any strength. 
/ZS - Probably a little late on this entry but just broke out and trend will be going up for a while unless steep selloff.
/NKD - Scary to buy into these steep corrections especially after losing the 50SMA but I think is clearly a buy here for a bounce play.  Please position size accordingly though as stop would need to be much wider for this contract.  Trend would start to turn down around 600 points from here so keep that in the back of your head for a stop.

Short
 /YG - Trend is solidly down and has been for quite some time, I see no reason though to why initiating a position would be a bad thing. 
/6A - All curencies are mostly in downtrends against the dollar, but the dollar is fairly indecisive right now.  The fast line for most of these is around 0 and look fine for new short entries. 

/6N
 /J7
 /6S
 /SB - Very long trend down here but very strong...clearly late to short but nothing wrong taking a token position and scaling in more on strength and or the fast line moving up near 0.
 /LBS - My favorite short here, super strong trend down and then sharp and quick counter trend move following by a reversal today.  I would have been shorting more around the core yesterday and this AM, but now 1 contract seems fine.
 /KC - Downtrend, resistance at 10SMA, fast line near 0, textbook short in my book.
 /ZN - Probably late but trend seems to just be getting started...would like a token position here and adding on strength.

I am getting long winded here but if you follow daily it should be easier to keep up with.  I will type up how I use stops and profit targets in the next couple of days.  Good luck!!