This is Sir Pips.
If you wish to watch the video, just click on it, and then click on "play" icon. My video version is MUCH MORE detailed so I encourage you to watch it.
HI-res.: 01-15-2008.swf
Let's first review what happened on Friday.
On Friday we had the UK Industrial Production. It came out very close to expectations so it was a no trade.
Then we had Canadian Employment Change. It came out at -18.7 versus +15 K. This number came out positive so often that I even recommended selling USD/CAD before the news so it was a big shock when it came out negative. It moved the market very violently: 78 pips instantly with very little, almost no retracement. Eventually USD/CAD moved up even higher so we got about 130 pips move in the first hour of the report.
At 8:30 we had a few indicators such as Canadian Trade Balance and U.S. Trade Balance. None of them were tradable.
Let's now talk about Tuesday.
1. Tuesday, January 15th, 2008 (4:30 a.m. New York Time) UK
At 4:30 a.m. we will have UK CPI y/y coming out. Historically I was trading the y/y headline but recently the core number became more in focus so make sure that the deviation agrees between the headline and the core number; if there is a conflict, I would stay out. Historically, the headline is more powerful but keep in mind that in November we had a tradable deviation on it but the core number screw everything up. I would trade a 0.2 deviation on the headline y/y. If it comes out at 2.2 or higher, it would be a buy GBP/USD signal. If it comes out at 1.8 or lower, then it would be a sell GBP/USD signal.
2. Tuesday, January 15th, 2008 (5:00 a.m. New York Time) GERMANY, EURO ZONE
At 5:00 a.m we will have German ZEW. A deviation of 15 can be tradable but this indicator is not a hot indicator, not even warm so I don't recommend trading it at this time.
3. Tuesday, January 15th, 2008 (8:30 a.m. New York Time) USA
At 8:30 we will have U.S. Core Retail Sales X Autos m/m coming out. It is expected to come out at -0.1%. This is a key indicator as people are asking if the U.S. is in recession now. I will be trading USD/JPY with 0.6 trigger. If it comes out at -0.7% or more negative, that would be a very weak number and I would sell USD/JPY. If it comes out at +0.5 or higher, it would be a positive signal for the U.S. dollar, and I would buy USD/JPY. If the trigger is hit, I would expect 35 pips of price action either direction. One more thing: we will also have the U.S. PPI number and Empire Survey. If the Core Retail Sales comes out very close to expectations, look for a big deviation on PPI number such as 0.3 or 0.4, and on Empire Survey a deviation such as 10 or more. This is not necessarily a trade but an idea what may happen if the Retail Sales comes out flat.
If news trading seems to be very interesting for you, then I suggest you to go to Forex Diamonds - News Trading Education and read everything about this service. It is a live trading service I provide with Felix, and I will be able to show you exactly what I am doing as I am leading hundreds of traders just like you every day with very clear strategies on when to get in and get out. As people are following my trades, they are learning how to trade the news, feel comfortable with trading and make good profits. We offer 21 days free trial so you can just try it and see how you like it.
Thank you very much, and good luck with your trades.
To Our Success!
-Sir Pipsalot
The video with the signal is recorded by Sir Pipsalot.
For your convenience, this text is written based on the video by Crazy Cat
If you wish to watch the video, just click on it, and then click on "play" icon. My video version is MUCH MORE detailed so I encourage you to watch it.
HI-res.: 01-15-2008.swf
Let's first review what happened on Friday.
On Friday we had the UK Industrial Production. It came out very close to expectations so it was a no trade.
Then we had Canadian Employment Change. It came out at -18.7 versus +15 K. This number came out positive so often that I even recommended selling USD/CAD before the news so it was a big shock when it came out negative. It moved the market very violently: 78 pips instantly with very little, almost no retracement. Eventually USD/CAD moved up even higher so we got about 130 pips move in the first hour of the report.
At 8:30 we had a few indicators such as Canadian Trade Balance and U.S. Trade Balance. None of them were tradable.
Let's now talk about Tuesday.
1. Tuesday, January 15th, 2008 (4:30 a.m. New York Time) UK
At 4:30 a.m. we will have UK CPI y/y coming out. Historically I was trading the y/y headline but recently the core number became more in focus so make sure that the deviation agrees between the headline and the core number; if there is a conflict, I would stay out. Historically, the headline is more powerful but keep in mind that in November we had a tradable deviation on it but the core number screw everything up. I would trade a 0.2 deviation on the headline y/y. If it comes out at 2.2 or higher, it would be a buy GBP/USD signal. If it comes out at 1.8 or lower, then it would be a sell GBP/USD signal.
2. Tuesday, January 15th, 2008 (5:00 a.m. New York Time) GERMANY, EURO ZONE
At 5:00 a.m we will have German ZEW. A deviation of 15 can be tradable but this indicator is not a hot indicator, not even warm so I don't recommend trading it at this time.
3. Tuesday, January 15th, 2008 (8:30 a.m. New York Time) USA
At 8:30 we will have U.S. Core Retail Sales X Autos m/m coming out. It is expected to come out at -0.1%. This is a key indicator as people are asking if the U.S. is in recession now. I will be trading USD/JPY with 0.6 trigger. If it comes out at -0.7% or more negative, that would be a very weak number and I would sell USD/JPY. If it comes out at +0.5 or higher, it would be a positive signal for the U.S. dollar, and I would buy USD/JPY. If the trigger is hit, I would expect 35 pips of price action either direction. One more thing: we will also have the U.S. PPI number and Empire Survey. If the Core Retail Sales comes out very close to expectations, look for a big deviation on PPI number such as 0.3 or 0.4, and on Empire Survey a deviation such as 10 or more. This is not necessarily a trade but an idea what may happen if the Retail Sales comes out flat.
If news trading seems to be very interesting for you, then I suggest you to go to Forex Diamonds - News Trading Education and read everything about this service. It is a live trading service I provide with Felix, and I will be able to show you exactly what I am doing as I am leading hundreds of traders just like you every day with very clear strategies on when to get in and get out. As people are following my trades, they are learning how to trade the news, feel comfortable with trading and make good profits. We offer 21 days free trial so you can just try it and see how you like it.
Thank you very much, and good luck with your trades.
To Our Success!
-Sir Pipsalot
The video with the signal is recorded by Sir Pipsalot.
For your convenience, this text is written based on the video by Crazy Cat
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