Happy New Year to all subscribers and followers of this performance blog. Here’s hoping that 2009 will be a better year, although I have my doubts about its ability to offer any sustained trends. As subscribers know, I have been expecting broad range trading to take center stage over the coming years and therefore continue to suggest that swing trading, as we’re doing here, will provide the best returns.

The ASX trend is trying to turn higher. The daily trend flipped to the long side this week, albeit price action is not convincing. We’ve been looking for a move toward the 4000 level as a first target but have got some higher targets should prices skim straight through. That said we’re at a ‘make or break’ point right here so it’s up to the US tonight to offer some support.

We went into the break with 5 long positions which all remain open; ASX, DJS, IRE, NAB and BSL. Some have been doing well, others meandering around without any great conviction.

The Model Account is now +5.8% since it’s inception on October 1st, although the ASX has really only been getting some trading action since late November. Basis 0.5% risk per trade the 5.8% return is a great result for what we’re trying to achieve. Basis the standard 2% rule we’d be over 23% but in this environment we’re going to keep a low risk profile. Our goal is solid capital gains over the longer term rather than shooting the lights out.

I’ll post some of the charts of current trades over the coming days, but for now here is the latest trading statement for the ASX account.

Click to enlarge