A Cheerful Day ?

Day Traders, Swing Traders must have well defined futures trading strategies. I assume most people are into online day trading where they enter their own orders. I mentioned this since it is very difficult to go for day trading when you are calling your broker on phone.

Friday is the day before the big news event. Markets may continue to exhibit intra day choppineess or finally have a trend day. Which one is the likely scenario?
The asnwer is: we do not know. As I write this, the world markets are slightly up, an NDTV exit poll gives 246 seats to the UPA and the Fourth front, pushing this group within striking distance of power, without the need for left support.

Today’s trading view is positive. The methods are: (a) Use the 15 minute breakout rule to enter the long side, (b) Buy on breakout after a period of consolidation, (c) Buy on an Oscillator dip to the middle line (zero for the CCI, 50 for stochastics & RSI). Keep a stop, but keep it slightly loose so that full advantage may be taken if today turns out to be trend day.

All of this is based on the premise that our positive outlook will prevail. It may not, in which case you will either not get entries,, or get stopped out once. That’s trading.

Should you carry long positions into Saturday’s big news events? My views has been: avoid trading during news events. I always stay away. You may wish to keep an options straddle by buying calls and puts of 3600 strike. That’s to take advantage of any sharp post election move.