February 10th

Results

European Turmoil

Today was such a brutal day, Europe got DESTROYED due to talks on inflation rising, and not increasing interest rates. Talks of Portugal potentially being bailed out since countries are no longer buying treasury bonds. As well as other minor news all built up to create this path of destruction that literally wiped 40-80 points on all European Stock Exchanges for most of the morning and afternoon, slowly recovering by the end of the UK session at 4:30pm.

My trades on the German Stock Exchange (DAX30) went according to plan, I waited for it to reach a new daily low, then waited for price to reverse due to people taking their profits (causing price to go up, a retracement phase), placed my order at the point I thought it would stall, then eventually go down penetrating the current low to a new 1 during this down-trend and constant bad news. 

I waited for what seemed like an eternity, it went through a sideways consolidation range for 5 HOURS (where price is not moving), this is not normal during current live trading sessions. A gut instinct was telling me to reverse my position and buy, or close my position for a small loss and get out of the way, because something was happening behind the curtains that is not being reported.

The following 2 hours were mind blowing to see, DAX30 recovered all of its previous losses and moved up higher than where it opened at! I saved a lot of money by getting out when I did.

UK Official Bank Rate

The Bank of England kept interest rates at 0.5% which it has been at for the past 23-26 months. So no movement in the FTSE100 there based on that anyway. Asset Purchase Facility figures remained the same also.

USA Unemployment Claims

The number of Americans filing for first-time unemployment benefits fell to the lowest level in more than 2-1/2 years last week, easing some of the disappointment about a weak monthly jobs report. There were 383,000 initial jobless claims filed in the week ended Feb. 5, the Labor Department said Thursday. This was down 36,000 from the week before, expectation for the week was 415,000.

This further destroyed the already falling European Currency against the USA Dollar.

I shorted the Euro straight after the news broke out at 1:30pm, making close to £120 within the first hour, went through its retracement phase where people took their profits so the Euro regained ground to where I was back to break-even, this happened twice then it stalled just like the DAX30! The UK Session closed at 4:30pm leaving just New York open until 9pm when the Asian Session takes over (which moves extremely slow for currencies that do not include the Australian Dollar, Japanese Yen, or the Chinese Yuan). I kept this open for as long as I could hoping for it to make me the profits it had done earlier, but unfortunately had to close it due to fears it would recover while I will be sleeping.

Disappointing day and frustrating, because I done everything right, DAX30 I got unlucky, realised what was happening and got out when I did that actually saved me losing an extra -£280. For the currency pair, I got in straight after USA news broke out, and I failed to take my profits due to personal greed. This is something I need to work on in the future.

News to look out for tomorrow:

7:45am FRANCE Non-Farm Payrolls will watch the CAC40 Exchange.

9:30am UK Producer Price Index Input & Output

1:30pm USA Trade Balance

2:55pm USA Consumer Sentiment and Inflation Expectations

Looking to recover my losses tomorrow, if not then there is always next week!

Goodnight all.