Friday, 25 May 2007

The Dow took a Bow

Strange behaviour by the Dow yesterday - When the figures for the New Home Sales were released 30 minutes after the US market opened, which turned out to be way above the forecast, 981K vs 860K expected, the Dow spiked up by nearly 70 points to the all time record of 13,625. Minutes later the market as a whole were struggling to hold on to their gains and soon found themselves on the red carpet - in fact NASDAQ Composite and NASDAQ-100 were even bigger losers than the Dow in terms of percentages - they both shed nearly 1.5% by the time it was time to go home.

Ironically, the reason for the sell-off was the strong Home Sales figures, hence the possibility of FED having to raise the interest rates!!

Regarding my own CFD Trading, my plan for the day paid off - earlier on in the day, I had set a Limit Sell Order at 10 points above the nearly previous high; at 13,620 which got hit by the system ... and closed the position when it descended to 13,545 for a juicy profit of 75 points - as usual with hindsight, I could have got a lot more out of my CFD short position as the Dow went a lot lower into the low 13400's whereabouts - but still a nice profit at the end of yet another trading day...


simon said...

I would like to do a link exchange. Please check out my blog:
If you are interested, place a link on your blog and then let me know and I will return the favour ASAP.


Rod said...

Hi Simon,

Thanks for choosing my blog for a link-exchange. But really I don't believe our businesses are very similar to each other. I noticed you are a member of the Myblolog group - have you tried finding other sites which are more closely related to yours in there? - I am sure there must be a lot of sites which would have more synergies with your blog and hence a link-exchange would be a lot more beneficial to both parties.

All the Best,


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