Forex Trading Signal 12/13/07

Felix Homogratus

Commander in Chief
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.

I am Felix's partner, and I trade news on Forexdiamonds room. Felix asked me to write these signals for you, and I am happy to do that.

Let's first review what happened earlier today.

First, we had UK Average Earnings + Bonus. It came out at 4.0 so it did not hit our sell trigger. We also got the unemployment rate a little bit better so there was a little conflict. We did see a 25 pips surprise action; however, it was not able to maintain itself because of that conflict.

Then we had New Zealand retail sales. It came out at -0.7 so it hit out sell trigger. It moved 30 pips in first a few seconds, and then it traded down another 15 pips or so. It was never able to break lows but within first hour did not pulled up either. When I was trading live and was done with reading numbers, the price was already at 7865 so there was not much opportunity to trade after-spike here.

Then we had RICS House Price Balance coming out. I said to just be aware of it but not necessarily trade it. The number came out pretty big, and we traded it in the room. It worked OK so I will try to give more official signal next month. It was not a big move but it moved slow enough so you could make quite a nice profit on it. Anyway, it was only 18 pips move so it was definitely not the most important indicator that would turn the market.

Last one was Australian Employment Change. This one was really bad. It came out 52.6 so it was a very big deviation and a very strong buy signal. However, the rare thing what happened, and this happens only maybe once a year, we got a BIG conflict on the unemployment rate. It deviated by 0.2 from 4.3% expected to 4.5%, and it was a conflict so you never know what may happen next. Usually such conflict does not happen but once a while it does. It spiked up 35 pips very quickly, and without unemployment conflict such level would held but because of that conflict the price went back to pre-release price very quickly. I took loss on this trade. Well, this is what happens if you trade Forex - you cannot be right 100% times.

Let's now talk about tomorrow.

1. Thursday, December 13th, 2007 (3:30 a.m. New York Time) SWITZERLAND
At 3:30 New York time we will have Swiss Interest Rate coming out. It is expected to come out at 2.75%. About 16% of economists are expecting them to hike the rate. If they do hike to 3.00%, it will be a clear sell signal on the GBP/CHF, good for 50 to 70 pips or more in the first hour of the report. If they leave the rate unchanged, unless you are very experienced I would recommend you stay out because the price action will all depend on comments. If they cut the rate to 2.50%, then would be a buy signal, good for 50 to 70 pips but this will not happen.

2. Thursday, December 13th, 2007 (8:30 a.m. New York Time) USA
At 8:30 a.m. New York time we will have a few indicators. I would skip CAD manufacturing shipments as it was not performing well at all. I would focus on the U.S. Core Retail Sales. It is expected to come at 0.6%. If it comes 0% or lower, that would be weakening U.S. dollar, and I would sell the USD/JPY because of equity correlation, good for 30 pips. On the other hand, if it comes out at 1.2% or higher, it would be strengthening U.S. dollar and equities, and I would buy USD/JPY and expect 30 to 40 pips. If the PPI conflicts, then it may be a problem and I would consider staying out.

That's all for tomorrow.

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
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thank you for the signals!!!
hope to make more money than yesterday... also had a big loss on the AUD... :(


thank you Pipsalot for your signal.
I would appreciate if you can explain us why you choose GBP/CHF (instead of USD/CHF) and USD/JPY (instead of GBP/USD).
Also, concerning the second announcement as I usually trade GBP/USD, should I skip this or not???
Thanks again.


I'm also curious about the sudden change in pairs. Personally, I'm more than happy to trade outside the typical GBPUSD/EURUSD/USDCHF set, but would be very interested to learn the reasoning behind selecting one pair over another.

I'm still licking my wounds over what happened to the AUDJPY when the big interest rate statement came out as expected. :mad: