Forex Trading Signal 08/20/08


FPA Forums and Reviews Admin
The webserver went on strike for a little while last night. It demands more ram and a bigger hard drive. Here is the Daily Signals that Crazy Cat sent out by email.


Let's first review what happened on Tuesday.

Sir Pips still is on strike. Felix agreed to raise his salary by $1.00
an hour and was going to send an adjustment check in the amount of $7.45
but Sir Pips demands a wire transfer for $7.45.

Anyway, at 5:00 a.m. we had German ZEW coming out. It came out better
than expected and EUR/USD moved up by 30 pips or so. I personally
canceled the trade on one of my computers because I saw EUR/USD going
up before the report was released. On the other computer where I had
Oanda running, I made 1 pip profit. I decided to get out quickly because
of strong sell trend on EUR/USD.

Then at 8:30 a.m. we had bunch of U.S. reports. U.S. Housing Starts
did not hit my trigger so it was a no trade. I decided to skip this
report because my health was more important (and I did not expect big
moves anyway) and otherwise I would be all night and day up. It always
feels good when you skip a no trade. :)

On Wednesday we have two events:

1. Wednesday, August 20th, 2008 (4:30 a.m. New York Time) UK
At 4:30 a.m. we will have MPC Meeting Minutes and 7-2 for hold vote
is expected. I don't trade this because I cannot set up SNW for that,
and since I live in Chicago area, that would be a middle of night so
I prefer to take a few hours sleep and wake up fresh for morning reports.
Since I will not be trading it, I do not want to recommend anything.
This is an important report and historically it was able to move GBP/USD
by a lot of pips. However, it also requires you to have paid and reliable
news providers so you can get the vote as fast as possible. What really
counts here is not only the vote but also names, that is who voted how.
This is not for beginners for sure.

2. Wednesday, August 20th, 2008 (8:30 a.m. New York Time) CANADA
At 8:30 a.m. we will have Canadian Retail Sales. This might spike up
or down, and reverse so be careful. I would trade the headline number
which is expected to come out at 0.4%. I would trade it with about
0.7 trigger here. If it comes out at 1.1% or higher, it would be good
for the Canadian dollar, and I would go short (sell) on USD/CAD, looking for
35 to 40 pips. If it comes out at -0.3% or lower (more negative), I would
go long (buy) on USD/CAD, looking for 35 to 40 pips as well. What is
interesting about this report is a lot of people pay attention to the
core number as well. You may try to set up 0.7 trigger on the core number
as well, and enter a trade on either the headline or the core number,
whichever comes first. Probably smaller deviation could move USD/CAD
as well but we had huge deviations recently so I would be more careful
with smaller deviations as I am not sure how the market is sensitive
to that right now. One thing for sure, if we get a small deviation,
please take your profit rather fast. One more tip: EUR/CAD usually moves
much better...... but pay attention to its spread. Canadian Retail Sales
is a good report to trade but please don't turn a profitable trade into
losing one - take your profits fast, you can always reenter....

That would be all for Wednesday.

Sirpipsalot has a live trading room, in which he trades these news
reports. There, he shares his trades in real time, including exact
entries and exits, and detailed explanation for every entry and exit.
The service costs $299 per month, but we have a 7-days FREE TRIAL.
Go to Forex Diamonds to sign up for the FREE trial. This offer
is for NEW customers only.

To Our Success!
-Crazy Cat

PS: the real reason why we don't have videos is because Sir Pips is
out of town. He makes way more money than I wrote yesterday........
but it was funny to read all comments. ;-)