Saturday, February 26, 2011

DOW breached 30 Day Moving Average

Fellow traders,

Thousands of foreigners have fled Libya amidst the political unrest & violence in the North African nation. On Wednesday, 23 Feb 2011, Crude oil prices reached US$100 a barrel in the United States due to the continued unstable situation in Libya - which is the 12th largest exporter of crude.

On Wednesday, 23 Feb 2011, the Dow Jones Industrial Average and the S&P 500 Index breached their 30 Day Moving Average for the 1st time since Nov 2010. There was a rebound on the moving average on Friday, 25 Feb 2011. Now we have to see whether this rebound will take strength next week.

Yours Truly,

Tony Chai

Friday, February 11, 2011

The Dow extended its winning streak

Dear fellow traders,

On 9 Feb 2011, the Dow Jones Industrial Average extended its winning streak of 8 consecutive up days to close at 12,239; this despite the protest at Egypt, started back in 25 Jan 2011, to force Egypt's President Hosni Mubarak to resign.

As of this writing (11 Feb 2011), Egypt's Vice President, Mr Suleiman, has announced that Mr Mubrarak has officially stepped down and a military council would be running the country's affair.

On 11 Feb 2011, the Dow Jones Industrial Average was up +43.97 points to close 12,273.26, a fresh 2 and a half year high. The NASDAQ was also up an impressive +18.99 points (0.63%) to close at a session high of 2,809.44.

The following is an update of my trades with the Star Trading System.

There were a few trades which were stopped out in Jan 2011. The trades were better going into Feb 2011 as I closed those positions which made big intra-day price movement. For instance, one of these companies won a suit and their stock price gapped up about +$1.70 at the opening, which presented a great opportunity to close the position.

Review of Star Trading System

Warmest Regards,

Tony Chai