Hi there my friend 
Let's first review what happened earlier today.
At 4:30 a.m. we had UK PPI and trading against the number seemed to be a good idea. Sir Pips in the Diamonds room entered long right after the spike and as far as I know, they make some good money.
Let's talk about Tuesday.
1. Tuesday, September 09th, 2008 (4:30 a.m. New York Time) UK
At 4:30 a.m. we will have UK Industrial Production m/m. I am not crazy about this report but certainly if your broker offers you a low spread, this might be tradable with 0.5 deviation. It is expected to come out at -0.1%. If it comes out at 0.4% or higher, we might see GBP/USD going up by up to 30 pips. If it comes out at -0.6% or more negative, we might see GBP/USD going down by up to 30 pips as well. However, this report tends to retrace and go to the other way so it might be a good idea to trade against it right on the spike. Be careful and watch your spread but historically it worked pretty well. If you want to trade the spike, also make sure your spread is low.
2. Tuesday, September 09th, 2008 (10:00 a.m. New York Time) USA
At 10:00 a.m. we will have U.S. Pending Home Sales. Well, this is not a big mover either but if you can get low spread and you know how to exit fast, you may give a try with about 5.0 trigger. It is expected to come out at -1.0% to -1.2% so let's say -1.1%. If it comes out at 4.0% or higher, I would buy USD/JPY, or sell EUR/USD or sell GBP/USD and look for up to 30 pips move. If it comes out at -6.0 or more negative, I would sell USD/JPY or buy EUR/USD or buy GBP/USD and expect 30 pips move as well. This may either retrace or go further so once you are in profit, take at least half of it, preferably 75%, and set up the rest with SL at BE. The way how it works is if you don't take the profit, it will retrace and go the other way. If you take the profit, however, it will move even more and you will regret you took the profit so early. So take 3/4 of your profit and see what it wants to do.
That would be all for Tuesday. Nothing really important...
TRADE LIVE WITH SIR PIPS FOR FREE!
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
Let's first review what happened earlier today.
At 4:30 a.m. we had UK PPI and trading against the number seemed to be a good idea. Sir Pips in the Diamonds room entered long right after the spike and as far as I know, they make some good money.
Let's talk about Tuesday.
1. Tuesday, September 09th, 2008 (4:30 a.m. New York Time) UK
At 4:30 a.m. we will have UK Industrial Production m/m. I am not crazy about this report but certainly if your broker offers you a low spread, this might be tradable with 0.5 deviation. It is expected to come out at -0.1%. If it comes out at 0.4% or higher, we might see GBP/USD going up by up to 30 pips. If it comes out at -0.6% or more negative, we might see GBP/USD going down by up to 30 pips as well. However, this report tends to retrace and go to the other way so it might be a good idea to trade against it right on the spike. Be careful and watch your spread but historically it worked pretty well. If you want to trade the spike, also make sure your spread is low.
2. Tuesday, September 09th, 2008 (10:00 a.m. New York Time) USA
At 10:00 a.m. we will have U.S. Pending Home Sales. Well, this is not a big mover either but if you can get low spread and you know how to exit fast, you may give a try with about 5.0 trigger. It is expected to come out at -1.0% to -1.2% so let's say -1.1%. If it comes out at 4.0% or higher, I would buy USD/JPY, or sell EUR/USD or sell GBP/USD and look for up to 30 pips move. If it comes out at -6.0 or more negative, I would sell USD/JPY or buy EUR/USD or buy GBP/USD and expect 30 pips move as well. This may either retrace or go further so once you are in profit, take at least half of it, preferably 75%, and set up the rest with SL at BE. The way how it works is if you don't take the profit, it will retrace and go the other way. If you take the profit, however, it will move even more and you will regret you took the profit so early. So take 3/4 of your profit and see what it wants to do.
That would be all for Tuesday. Nothing really important...
TRADE LIVE WITH SIR PIPS FOR FREE!
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