End of week report

Just finished trading for the week.

Good news

I've scalped (on 5 minute candles) £1500 this week.

Bad news

I've shorted the FTSE and am leaving it for a few days. I've even popped a few quid more in to leave a margin. Taking my first winnings one week and putting it back the next is not really good is it?

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I've been holding both long & short positions on the index this week but decided earlier today I was more comfortable wanting it to move in just one direction. I closed out my longs and am looking for a small retrace south of 40-50 points before the index continues her relentless upward momentum.

As she drops so I will layer in some 'force opened' longs.

So many people I know who trade are holding long term shorts, some from 5900's and others in the 6100's. They're in serious trouble. I'm aggregate short from 6425 (and the index is currently at 6488) but as I've scalped so well this week I only need a drop of 40 points to break even. I expect to see this during the Monday session. A few points lower and I'm earning handsomely.

This rise is madness although I do acknowledge that it's only the price action I must observe and nothing else. I actually think we'll see 6700 soon and who knows, maybe 7000 before the year is out and we begin a downward trend.

We've seen an unbelievable rise this year yet all the bad news is still there. Italy has just been downgraded to go along with their economic and political mess. The UK has recently been downgraded. Greece and Spain have been conspicuously quiet yet are mired in their economic problems. To watch the economists and traders on Bloomberg and CNBC you'd think we'd time travelled and are back pre credit crunch. The Dow has set a record high, the FTSE highest for 5 years and not far shy of it's all time record.

Print more money and all the problems go away. I don't think so.

The Index made a new high today and made a very bullish daily AND weekly candle. That's not good for the 85% or traders shorting it on IG index (or me!) however I'm only 40 points short of break even which is really a day's trading range. It's not beyond imagination that it will drop Monday, although it does look very much like we'll stroll through 6500 and push for 6550 next week.

The only trades I will make next week are longs.

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