Sittin' On My Hands

I'm currently holding a few currency positions (long: Aud/Jpy, Eur/Jpy, Usd/Jpy) but other than that I'm sitting on the sidelines. This week offered up a good opportunity to go long the stock market and I traded a nice little position in SSO and bought SNX...both of which I just sold into this morning's strength. Will they keep going up? Maybe, but I'd like to be in cash going into this holiday weekend, not to mention that selling strength quickly in the stock market has worked well lately.

As for currencies, I don't have a good feel for the primary trends...there's a lot of choppy action in the majors right now...especially the Eur/Usd. Until I get a good handle on the currencies, I'm just gonna stand back and watch. Here's a daily chart of the Eur/Usd:As you can see from my notes on the chart, there are bullish and bearish signs in the Eur/Usd. This may be an indication of a coming trend change...that being a bullish move in the Eur/Usd...or it could just be choppy action that followed a potential fake break out in the pair. For now it's best to wait and see what the price action dictates and then jump on when a trend is established.

Also, as I mentioned above, I had a couple of stock positions this week. My system gave me a buy for the S&P on the hourly and 5 minute time frames so I hopped on and then sold into overhead resitance this morning. I might have sold a little early but I want to play it safe in this market environment and book profits quickly. Here's an hourly chart of the S&P index:I hope everyone has a good trading day today and a good holiday weekend. I may or may not post tomorrow, we'll see. Also, I just starting reading Brian Shannon's book, Technical Analysis Using Multiple Timeframes, and so far it is really good. Will probably spend a few hours tomorrow reading through as much of it as I can since my office will be closed for Good Friday.

Happy trading.

TLT