Forex Trading Signal 10-30-2009

[Sir Pipsalot]

Happy Halloween folks,

Well, a day early, but a fun holiday in the states nonetheless. The markets have sure treated us with some nice setups as now both the EUR/USD and GBP/USD are excellent shorts at current levels for just about any timeframe. As I mentioned in a later response within yesterday's signal post, the GBP/USD has set up beautifully for a 200 pip SL position trade sell around 1.6550 to 1.6600, but it also can work as more of a swing trade sell with a stop above yesterday's highs (1.6604). The Euro retracement seems to be topping out, but I think it could still possibly gain futher up around 1.4900 before turning lower. A break through 1.4920 fibonacci though would have me concerned about the overall trend.

Stocks bounced beautifully right into the bottom edge of the sell zone I identified yesterday that would make for a good short between 1060 and 1080. I've entered more of a long term short now on stocks around 1060 on futures and 1063 S&P cash with a mental stop just above Monday's 1090 or so highs. Personally I've chosen to get short via put options. I'm not in everything I want to load up short, so I'm waiting for either further retracement (better price) or further downside confirmation (better odds) in order to add more to the position. Given how sharp and fast the retracement was in most markets though, I'm thinking it may not hold up much longer and the downside will resume faster than I had expected yesterday.

In news Thursday, we saw the EUR/JPY rocket up hard on GDP numbers that were only slightly above expectations, so there was a real overreaction there. Nevertheless, at least we had the right pair in mind for potential upside on a good number. There's no real clear news opportunities for Friday. There is a lot of 0830 US Data, but it's tough to pick a specific one out of the bunch of smaller indicators to key in on, so for news trading purposes, it's probably best to skip. As usual with the U.S. though, if it's all really good news, it should help EUR/JPY, and if it comes in low, EUR/JPY should exhibit weakness around that time.

 

[Sean Texas]

Ok..

Can you tell me what to do, and not what I should of done

translated: Sir Pipsalot, can you teach me how to read so I can realize you just recommended shorting GBP/USD now anywhere between 1.6550 and 1.6600 and even gave me two potential SL's. I might also realize you also like a short here on the EUR/USD at 1.4830 but are a little worried the rally might not be over, so it might be best to wait to short it closer to 1.4900 to play it safe. Maybe I'll even notice that the stock trade you're in from yesterday afternoon is still at the same price on futures and I can follow that too!

 

[M.Nazri]

thank you sir and HAPPY HALLOWEEN

 

[Pharaoh]

Can you tell me what to do, and not what I should of done

Sir Pips gave current trade ideas in the first paragraph. He is also kind enough to go over what did happen (good or bad) after the fact.

 

[Sir A.Dib!]

thanks a lot Sir pips a a lot and happy halloween

 

[Sir Pipsalot]

Can you tell me what to do, and not what I should of done

To add to Pharaoh's rebuttal, the stock prices I quoted were also the current prices as I posted the signal, so the same stock opportunity exists right now around the same price if you're willing to take it on futures, or in the U.S. morning if the levels hold until the stock open.

 

[jhnsmith978]

Hello friends..
I have already started trading and current capital is 8K. Anyways I am really excited that Halloween is about to came after 2 days..I have decided what get up i gonna take..
I am really looking forward to it..

 

[lespascorine]

Hi Sean Texas

I strongly suggest you take the Profit Mongers subscription so you can have access to Sir Pipsalot live trading, webinar and more...

Since I have done that I'm learning a lot on how to trade ans the lingo etc...

Also, there is a chat room where you can ask fellow trader questions.

GOOD LUCK Sean

 

[bhasspoken]

Gbp/usd

Hi Sir PIps
Where do you think we should take profits from GBP/USD or should we ride this one down.
Kind regards
Glen

 

[JAB]

Makes it look easy

When a trend, be it micro or macro, is in place, its easy to call orders and the confidence to do so for yourself will come with time. The hardest part, and this Im grateful to Sir Pips for having taught me, is to bide your time and be patient when the markets are giving no clear signals. It is during those times that in the past Ive kept trading and lost what I made on the clear moves. If your new, or still making the mistake of trading in mix markets, take a deep deep breath, and wait for the clear signal. Trade for profit not for fun......and check out profitmongers....theyll set you straight!