GreenForexTrading.com
ForeX for Xtra Gr��n
Hi everyone,
In this e-mail I am going to give you my review for the month past
and view on the market for the month of February, the week ahead and
today, Sunday the 31th of January 2010.
REVIEW:
What a week it was as expected volatility increased in several
markets with the USD and JPY denominated pairs showing strength
towards the end combined with the weaknes of the GBP and EUR. In the
room we were able to capitalize on some moves early in the week
(making up for a choppy negative January in the beginning) to end the
month net positive. While we did expect the USD and JPY strength, the
bulk of the moves occurred in the US market with last Fridays GDP
numbers contributing to dollar strength. Being a breakdown day in the
US market while the earlier Asian/London markets were range-bound did
not lend to the nice trades in the Trading Room like earlier in the
week but it has clarified sentiment for some longer positions overall
and I am not going to sniff at 130 pips for the week.
MONTH OF FEBRUARY:
Going forward sentiment has definitely turned on the EUR as is the
Greek financial crisis has brought to the forefront the crux of what
will always be the EUR problem. For all, the lambasting of the USD
(in spite of all the flagrant money printing)&it is still backed by
the full faith and credit of the US govt., no matter how weak that
may be, it is something. The EUR, in contrast is backed as long as
participant countries are willing to remain in the EUR and be default
that the financially stronger participant countries are willing to
bail out the weaker ones. As was seen last week, with reluctance to
do so for Greece, the EUR in this regard became viewed as
fundamentally flawed. Combine this fact with a stronger USD and the
perception that the US is getting stronger with a +5% GDP rate (I say
perception) we are off to the races&and so the sell-off began in the
EUR/USD and EUR/JPY pairs with sentiment taking the GBP/USD and
GBP/JPY pairs along for the ride.
What is surprising is the degree the commodity (AUD, CAD & NZD)
pairs (against the USD & JPY) were also sold off. I did expect some
continuation selling with the hope of picking these up on the long
side as cheap plays sometime early February, but with new monthly
lows being seen in these pairs, it is best to stand aside for now
until sentiment turns as the risk of a washout is high and in the
area were accounts can be blown. Not to say I will not look at some
scalp opportunities in these pairs, but hold no overnight positions,
as volatility is sure to increase for awhile with plenty of churn to
go with your antacid. So stand aside is the call on these ones for
now with maybe a couple of juicy scalps in the room for the month
ahead.
The Monster trades. Thats right, there is now more than one!
While the GBP/JPY was stopped out last week, and the expected move
back in the 145-150 range was brief (enough to take out stops) it
still managed to travel � way into the range @ 147.2 and promptly
resumed its slide, further confirmed by the closely correlated
EUR/JPY pair. This weakness must be sold on any residual strength as
I no longer expect a reversal to the upside, but HARD STOP are
required, just in case. I recommend scale in SELLS (0.1 contract at a
time) on strength in the GBP/JPY in the 144.0 to 144.75 range with
looser stops that usual, around 146.2 (so explains the very small
position size) and/or scaled in SELLS on strength in the EUR/JPY in
the 126.0 to 127.0 range and/or, or better with looser stops that
usual, around 128.0. NOTE: All position trade stops are HARD stops,
NOT mental stops. Remember, hard stops for overnight positions,
mental stops for day trades.
Why the Monster Trade ?
From last week&.
One has to look back to the action of this pair from June to August
of last year to see a similar range-bound trade that ended with the
GBP/JPY pair going from about 210 to 150 in two months&yes thats
5000pips!
WEEK AHEAD:
I have no forecasts for the week ahead as some pair moves have been
limit down through support and are ripe for reversals (I am not a
bottom picker), and so continuation moves are more risky unless a
pullback occurs. Other pairs look to be on the verge of collapse, but
they could easily reverse from key hourly, daily and weekly support
levels. Either way, it should be a volatile week with opportunities
that we hope to take advantage of in the Trading Room as events
become more clear.
*FOR TODAY:*
*In the late Asian/early London Session, a breakout/breakdown trade
in the AUD/USD.***
* *
*SELL AUD/USD on any trade at/below 0.8800 with a stop at
0.8825&target = 0.8725 (75 PIPS).*
* OR*
* *
*BUY AUD/USD on any trade at/above 0.8835 with a stop at
0.8810&target = 0.8895 (60 PIPS).*
* *
*Obviously, the better the entry, the better the chance of success.*
That's it for today. Remember that I trade in the Live Forex Trading
Room between 1am-6am Eastern Time. I will be hosting my regular 3-4
hour session and some scalp trades could be on the menu. So there
should be a little more trending action and pips to be made.
Enjoy trading and good luck everyone!
*Trade with Mr. GREEN for a $39.00/trial for 1 WEEK*
*
Trades are issued in real time, including exact entries, exits and
detailed explanations. The service costs $99 per month, and we also
offer a 7-day trial for $39. So go to GreenForexTrading.com now and
take advantage of this offer.*
*Mr. Green*
*Risk Warning! *Trading foreign exchange on margin carries a high
level of risk, and may not be suitable for all investors. Past
performance is not indicative of future results. The high degree of
leverage can work against you as well as for you. Before deciding to
invest in foreign exchange you should carefully consider your
investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of
your initial investment and therefore you should not invest money
that you cannot afford to lose. You should be aware of all the risks
associated with foreign exchange trading, and seek advice from an
independent financial advisor if you have any doubts. All information
posted on this website is of our opinion and the opinion of our
visitors, and may not reflect current situations and occurrences.
Please, use your own good judgment and seek advice from a qualified
consultant, before believing and accepting and acting upon any
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