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Sir Pipsalot's Daily Market Update 1-28-2010

Discussion in 'Commercial Trade Journals' started by Sir Pipsalot, Jan 28, 2010.

  1. Sir Pipsalot

    Sir Pipsalot Former FPA Special Consultant

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    Hey folks,

    EUR/USD did break lows initially testing that key 1.3993 level I mentioned and bouncing there twice, but then breaking it hard (albeit shortlived) based on negative commentary from China about the USD being used as a carry trade. Given the strong break we had and the nice retracement, I think the EUR/USD is a good short from here (1.4015 as I type) with a 40-50 point SL and final TP around 1.3800 (take some partial profits early as always). If the hourly chart downside momentum does not hold up, it's quite possible the lows in place today will hold and the next good chance to get inline with the downtrend will be after a 38% retrace (now down to 1.4393).

    Stocks have continued to wiggle around in search of a bottom but are finally nearing that 38-50% retracement zone that would signal a good short reentry. I see futures moving higher overnight at 1102 as I type. Personally I plan to short ESH0 at 1104.50 and also 1112 towards the top of that range. If you want to use a tighter SL, you can put one at 1122, but 1132 would be a good deal safer.

    In news Wednesday, we saw the FOMC get just a bit hawkish by sticking with March to end MBS purchases, and with Hoenig dissenting and wanting to start raising rates sooner. This helped out the USD, but the subsequent stock rally after the volatility limited the scope of EUR/USD downside for awhile. NZ interest Rates came out with no surprises, so nothing worth mentioning there. There's no news that's super tradable on Thursday, so the next big news we'll preview is US GDP due out Friday morning.

    That's all for today's update. If you'd like to learn more about trading or trade along with myself and my collegues, come join us at Profit Mongers. Our subscription is very reasonable at $179 per month, and right now you can sign up for a 2 week trial to get started for only $29. This offer is for new customers only. If you have any questions, you can also email me at sirpipsalot@profitmongers.com

    To our success!
    Sir Pipsalot
     
  2. danmann

    danmann Recruit

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    99% Accurate! ;)

    Hi Pipsalot
    Yesterday thread was 99% accurate,
    but today i'm in doubt that will happen again
    Now is 8:45 GMT and Eur/Usd is on 1.4043
    Any way you rock
    Thank you for your dedication!
     
  3. Sir Pipsalot

    Sir Pipsalot Former FPA Special Consultant

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    Eat my EUR/USD dust =P

    The trade did end up working out... 1.3935 so far as I type without hitting the SL. It's all good though, not every trade works out, but this one did. If you did get in short EUR/USD above 1.4000, some partial profts should be taken, move the SL down to break even, and set a final TP around 1.3800.
     
  4. danmann

    danmann Recruit

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    I was wrong!

    Yes, you did it again and i was wrong this morning but at list i
    did changed my mind just in time to get in short. That was a nice profit 110 pips on sell and another 30 on buy so far.
    Sir Pipsalot, your work is brilliant!
    Thank again.
     

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