MARKET UPDATE 4

Now, I want you guys to understand something.  Normally I don't focus so much on what the pros are doing.

But weeks like this when there is a lot of major news coming out I know that manipulation rules the day because the pros are much more liquid.  Meaning that they have a lot more large commercial orders to fill.  Both on the long and the short side.  It;s just a matter of WHEN THEY DECIDE TO FILL THE ORDER...that allows them to control the market for calculated periods.

I mean they will have orders 100 pips above the market and orders 100 pips below the market.  Large orders that they scale into.  If I buy 1000 contracts I don't care if I get a bad deal on 1 contract if the market maker is working for my account.  I'm looking at the average price I get.  Am I making sense?

When the market is normal they need to be accounted for but not necessarily focused upon because, they are in on certain signals also.  But major news causes money to flood into their greedy little hands by virtue of the large amount of new money they suddenly get to manage.

So, don't get me wrong, they are not market gods.  Just, don't get caught bird watching in lion country.

The best way to get a feel for the news game is to gain experience by playing with 1/10th of your normal contract size.  You know, like tossing a small pebble into a body of water to figure out how deep it is and watching the ripples.

CHEER, JERRY

JERRY@FOREXTRADINGMAJIC.COM

JERRYJSTEW@YAHOO.COM

MARKET UPDATE 3

It's 9:48 as I write this and if you look at your 4hr charts you will see that the retailers that controlled that bar were short. Well, they just got disposed of when they just took it above the high.  Surely you don't think what you are seeing now are natural moves in the eurodollar.  Dudes and dudettes, the market was dancing like a cat on a hot tin roof and just suddenly slowed to a crawl when they low of the day was threatened.  Why?  Cause that's where the buy stops are located.  Where the retail longs bail out and the new money comes in with the limit orders going short.  It's the new money that controls the move.  When you're not ready to let the market fall you have to defend that low.  At least until you're ready to turn it loose.

CHEERS, JERRY

MARKET UPDATE 2

Alrighty then...

It's 1hr after the news announcement that were dollar positive.  Or that is to say, came in as expected. No suprises.  I have yet to see any news today or yesterday against the dollar nor strong Euro.

On our 1hr chart we can clearly see that the pro's are propping up the market right now.  Where are the retailers?  They are all long from yesterday, so the pros need the herd in to get the real party started.

They may hold up till Sunday and spike it down if they have to.  I may be wrong but that's the way I see it.

I say foul, so I ain't playin...

See how the stops are cleared out above the 1hr consolodation and below the 1hr consolodation...

but both ways, when some retailers try to enter on the breakouts it goes the other way.  This is typical of major news days.

The retailers whom got in on the news bar got that ass kicked as usual. 

But now we gotta keep creeping price up to get some herd in the game.  When they go long, well, I wouldn't go long but, I'm often wrong...

But most of the time, if we are wrong while we are on the sidelines we haven't lost any money and, that's the name of the game.  Defense wins championships.  Offense is exciting and sells tickets.

CHEERS, JERRY

JERRY@FOREXTRADINGMAJIC.COM

JERRYJSTEW@YAHOO.COM

MARKET UPDATE 1

I just have one thing to say right now.  8:30 am est ( 1:30 pm gmt ).  Huge u.s. data.

These reports will tell us if yesterday was a massive stop hunt.  If the news is in favor of the dollar then that will be the proof.  If I were an Op..uh I mean professional, and already know in advance the this morning's reports would be dollar positive, I would have done what they did yesterday.  Imagine if yesterday's move went down instead of up.  Then again today.  Everybody would have been along for the ride and there would have been panick in the euro zone that would make the decline even worse.

The situation is set up to be manageable for the professionals otherwise things may have gotten out of hand.

or

Maybe the dollar went the wrong way despite positive news because the op...I mean, professionals knew today would be dollar negative so and got a head start on the euro up move.

I believe the first senario is more likely.  I'm not worried either way because I don't trade the news, I fade the fools who trade the news...Okay, I'll be straight with you.  Sometimes, I feel like gambling but don't feel like traveling to the casino.  Then I take a shot at the news because the lottery is too boring. And most of the time, when it's all over I end up saying, "I should have went to the casino."  My odds would have been better...lol

In short, wait till 1 hr after the news for the heads to fall, then sweep up if we spot an opportunity.

Wait a minute.  I said more than one thing didn't I.  I gotta take a nap before the news comes out. I'm tired from working all night putting together some good shi...I mean stuff to keep you busy over the weekend.

CHEERS, JERRY

JERRY@FOREXTRADINGMAJIC.COM

JERRYJSTEW@YAHOO.COM