Well we appear to have gotten lucky the NDX100 is trading at 1806 after a brief foray in the morning with 1820 we have not closed the trade so were still in the game, target is 1752

Strictly the stop at 1815 has been breached nonetheless we shall stay short on the basis that we do not wish to be caught out again as last time. Mentally we shall hold the stop somewhere around 1820

I would add there is a strange propensity for the market of late to do this a sudden onslaught of buying.

Markets were well down on the day but the NDX has vaulted up to 1805 in the 20 point half an hour rally. This is a good place to short again. So we'll go short here with a stop at 1815 so only a small loss should we prove to be wrong.

Rather unlucky with yesterday's trade the market took out our stops and then sold off. For all the axioms that Wall Street has ever come up with there is only one never stated and which has any value and it's this. "BE RIGHT". You see we used excellent money management but nonetheless if we had not used stops we'd still be in with the trade. I still feel bearish through to my bones if we head back up to 1815ish we will short again. Otherwise we'll just sail with our long term trade which is still nicely in profit with the futures at 1805 this morning.

With the futures currently trading at 1800 I have decided to open another short trade at this level with a stop at 1815. The recent trading records are now listed at the bottom of this blog. I intend in due course to list also trades which I would refer to as squarings of price and time. These are the high probability trades.

The Markets are down a percent or more today just about across the board. Expect the next few days to see considerable selling pressure.

Currently the NDX100 is trading at 1817 this is above our stop at 1805 and so the short trade is closed giving us a running score of Wins 80 Losses 30. The longer term trade remains short from 1890. Looking at the cycles it seems the NDX is still in it's bear phase until at least the end of February. Looking at individual stocks Microsoft has been adhering to its Bayer cycle with virtual perfection. It is about to enter the final down phase of this cycle so we should expect the market to be dragged down with it.

Nasdaq 100 future is currently trading at 1783 expect a quite day today as both the Americans and Chinese are on holiday, we remain short.

Incidentally, with regard to open trades you will recall we still have short open from 1790 with the stop at 1805, the current running score is Profit 80 Losses 16. There is also the long term short trade that is open from 1890 that you will recall from the earlier posts.

Have had a good long look at the Nasdaq 100 over the last few days, we are currently trading at 1730 and it seems to me there is no support now until we hit 1661 which could well happen today or on Monday. Also looked at Gold which is certainly in the bear phase of it's cycle. I expect it will go down as far as $800 an ounce on this run. If you look at a chart of Gold you will note that this is at the area of a major trendline drawn up from 2006.

Currently trading at 1753. 1756 is the high of the day so far and I would suggest to a day trader that this is not an area that will be penetrated today, so its worth a short. I expect a sell off down to 1730ish.