Forex Trading Signal 05/16/08

Crazy Cat

Former FPA Special Consultant
Hi my dear Trader :)

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: 5-16-2008review.swf

Hi res: 5-16-2008preview.swf

Let's review Thursday first.

At 2:00 a.m. we had German GDP. It came out higher than expected, and there was a good price action on EUR/USD. There was 19 pips spike in the first minute, and then it moved much further in the first 30 minutes after the report. I did not give any signals on this but maybe this is the time I should start trading it.

At 8:30 a.m. we had Empire Manufacturing and Initial Jobless Claims. Everything came out very close to expectations. It was a no trade.

At 9:00 a.m. we had U.S. TIC. I did not give triggers on this so it was a no trade. It was good that I did not trade it, very weird price action. This time it paid to stay away. For full review, watch the video.

At 9:15 a.m. we had U.S. Industrial Production which deviated by -0.4 so it was a no trade. Actually the price moved pretty well, although the move was more because of technical than fundamental conditions.

Philly Fed came out very close to expectations so it was another no trade here.

Many people in the Diamonds room asked me if we should trade New Zealand PPI but I said no. Even UK PPI does not much too much. It came out 2.3 versus 1.1 expected so it came out really high... what did we see? NZD/USD moved 13 pips (remember, NZD/USD has quite high spread around the news time) and it went the other way. Those who did not listen to me, most likely lost some money. We should not trade PPI numbers maybe except the U.S. and UK, and only with big triggers.

To make the long story short, no trades on Thursday.

Let's talk about Friday.

1. Friday, May 16th, 2008 (4:00 a.m. New York Time) USA
At 8:30 a.m. we will have U.S. Building Permits and Housing Starts out of the U.S. It is hard to trade housing indicators because if the number is bad, people don't care too much; if the number is good, they think it might just be a fluke. If the Housing Start m/m comes out 1,000 K or higher, I would buy USD/JPY and expect 30 pips price action. If it comes out at 860 K or lower, I would sell USD/JPY, and expect 30 pips move as well. Watch out for the Building Permits, and make sure there is no conflict. I would exit quickly or skip the trade if there is a conflict.

2. Friday, May 16th, 2008 (9:55 a.m. New York Time) USA
At 9:55 a.m. we will have U.S. Consumer Sentiment coming out. I would use 5 trigger here. If it comes out at 67 or higher, I would buy USD/JPY and expect 20 to 30 pips price action. If it comes out at 57 or lower, I would sell USD/JPY and look for the same targets as well. However, if your broker raises spread, I would skip this report.

That's all for tomorrow.

If you want to make some money on nice spikes, try The Secret News Weapon - they also offer 25 days money back policy so try it and see if you can grow your account that way. A nice thing about the SNW is it has not only the autoclick feature but it will also allow you to see other reports so you will immediately know if there are any conflicts, and therefore you would know if you should stay in your trade or get out, or maybe even reenter on the retracement. With a fast market moving I cannot imagine checking on-line forex calendars which are really slow.

If you are interested more in trading news, go to Forex Diamonds - News Trading Education as I am trading there all of mentioned indicators live. Join the room, and get a lot of education from me and other traders that are there. I post trade plans and talk about the trades as well as give entry and exit signal live while the market moves. You can try it with no risk for 21 days so if you don't like it it is free. If you find it useful, then you can stick with us and make grow you live account with us. I am pretty sure you will be satisfied but at least give a try.

Thank you 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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