Tom’s Trading Journal November 14, 2017

These are my personal trading positions, these are not recommendations or solicitations to buy or sell any futures or options instrument. Trading futures and options instruments involves a high degree of financial risk, even with prudent money management. If you engage in purchasing or selling futures and options you could lose everything you invest and more.

I was stopped out of the December US Dollar Index at an average price of 93.955  for a loss of 48 points. The market as of this writing is priced at 93.74. The 4 period upper Donchian channel is priced at 94.555; the 4 period lower Donchian channel is priced at 93.640. The High/Low Moving Average (10 period, 8 period) is 94.675 and 94.252. The Parabolic Time Price (50,5) is short and switches to long at 94.904.  The 40 period Simple Moving Average is 93.640.  It is interesting that the market held the 40 day MA which it has been above since Sept 26, 2017, during the recent washout from 3/10/2017 to 9/12/2017 the market tested the 40 day MA 4 times.  This indicates to me that given any positive price action this may be a very low risk area to reestablish a long position.  For now I will wait for the market to show where it wants to go.

I am also long  December E-mini S&P 2250 puts at an average price of 6.117. Today the market as of this writing is priced at 2571.25.  The 4 period upper Donchian channel is priced at 2585.75; the 4 period lower Donchian channel is priced at 2564.25. The High/Low Moving Average (10 period, 8 period) is 2586.50 and 2571.66.  The Parabolic Time Price (50,5) is short and switches to long at 2593.89. The 40 period Simple Moving Average is 2553.31. Since Labor Day the Parabolic time and price has turned short 2 times plus today and within two days the market made new highs.  Follow through to the downside would especially with a trade through 2562 could open the door for a larger correction.  However, this market has been in a persistant uptrend since 1/2016 and requires a trade through the last reaction low at 2419.50 from 8/14/17 to put this trend at risk of ending.

I sold the December Australian Dollar at a price of .7609 with a buy stop at .7706 Good til Canceled. The market as of this writing is priced at .7573. The 4 period upper Donchian channel is priced at .7692; the 4 period lower Donchian channel is priced at .7573.  The High/Low Moving Average (10 period, 8 period) is .7683 and .7624. The Parabolic Time Price (50,5) is short and switches to long at .7696. The 40 period Simple Moving Average is .7765.  Although the market settled against my position, it quickly reaffirmed the breakout on the open of evening trade.  This market tends to be a quick mover reaching objectives quickly 3 to 5 days with a few runs lasting up to 14 days.  I will be watching for opportunities to move my stop down quickly.

If you have any questions or ideas please leave a comment.  Thanks for sharing.  Great trading.  Tom

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