MARKET UPDATE 8:45 PM WED JUL 13

Pop Quiz.  Why did the pairs spike against the u.s. dollar after 5:00 pm est today, catching most traders with their underwear down around their ankles?

In case you haven't been paying attention to what I've been saying about how the news is used, let's break it down.

The dollar has been rising something fierce against the euro for the past week with no end in site based on the the trend and what's going on with Greece and others in the Euro zone.  The dollar has been rising with no backing and filling ( pullbacks ).  When market makers can't back and fill they leave a lot of money on the table because that means a lot of weak hands ( retail traders ) who would have been punk ed out of their positions on the pullbacks get to massage their greed and stay in their positions for the big score.

Case and point the eurusd.  Since the start of the down move, the market has not pulled back.  Today's u.s data was not negative enough against the dollar to pull it back up.  If you have Lcm you know that 3 bar is where a market wants to go to restore the balance.  But, what if a pullback starts and there is formidable resistance between where price is and where 3 bar is located.

The eurusd started a healthy pullback today and that pullback really had no legs because the eurozone data and the u.s. data today basically balanced each other out.  the Fed said nothing that would weaken the dollar so, basically there was nothing to keep the euro moving up against the dollar.  The euro closed the day right up against upside resistance and nothing in sight to cause it to break through.  Nothing to do but bounce back down off upside resistance and test the bullish pivot that formed at the close of the day.  But worse yet for the euro is that not only did it stop at upside swing resistance but upside trend line resistance also, which is even stronger than swing 
resistance.  Euro can't go any higher without some juice.  Yes, it wants 3 bar up at 4258 very badly but as I mentioned, cut by two levels of strong upside resistance.

Not to worry says the market operators.  That's what we've got the news for...All we have to do is wait until 5:00 est when everyone is closing up shop for the day ( that's why they call it end of day right? ), and pull some surprise news right out of our ass, and shit all over them.  If you don't know who them is, look in the mirror, lol.

Moody's Puts US AAA Rating On Downgrade Review

Let's get real here.  You and i both know that the u.s. is not going to default on it's treasury obligations and let the u.s. economy collapse just because they heads refused to raise the debt ceiling!!!  If you know it and I know it, you know Moody's knows it.  Shoot, the whole world knows it. let's get real here. 

Now, don't get me wrong I'm not just venting here because I did not take a bathe here.  It just gives me a chance to illustrate to you the things I tell you about the news and that the world is a matrix and forex is part of the world matrix.  You must understand how the news works because that's how you loose all your profits after being on a winning streak.  One trade can erase all of your gains if you're not careful about monitoring what actually moves a market, which is news. 

Now, if you think that news just happened to come out during the dead zone between the close of the u.s. market and the open of the Asian market by chance, save yourself a lot of pain and the kids college fund and quit trading now... 

Now that brings me to Lcm.  I cannot tell you how many times that a pivot will form and yet, it looks like there is no way the a market can hit 3 bar target.  And out of nowhere something like today happens to put the market on steroids, if only just enough to hit 3 bar, hence, the term Trading Majic...Because, like Majic, something unexpected will happen to give a market the juice it need against all odds.  Human consciousness follows the universal laws of nature.  The market operators are just a tool of the laws of nature without even trying to be.  Once that imbalance is created in the form of a pivot, they must do what is necessary to bring the market back to balance either wittingly or unwittingly and 3 bar is the minimum point to reestablish balance.  Just as when you misstep and lose your balance it takes you at least 3 steps to regain your balance. 

News causes emotion.  Notice how that word is spelled.  E-MOTION ( Energy in motion ).  Thus, news causes motion...Market motion.  Lcm puts you in position to automatically take advantage of this truth.

I know I could be wrong about this.  All I need for you to do is tell me how...

CHEERS,JERRY

EURUSD UPDATE PART 2 9:12 AM EST JUL 13 2011

CLICK PAIR FOR VIDEO UPDATE

EURUSD  PART 2

CHEERS, JERRY

EURUSD UPDATE 9:12 AM JUL 13 2011

CLICK PAIR FOR VIDEO UPDATE

EURUSD

CHEER,JERRY

JERRYJSTEW@YAHOO.COM

JERRY@FOREXTRADINGMAJIC.COM

MARKET UPDATE WED JUNE 13

The markets are range bound and even the pairs that look like they have moved have not really moved is such a way as to give you a reasonable entry signal.  The moves we have seen so far have been setup signals ( moves to set a market up to where is CAN produce a signal.  The moves that I see that did occur tells me that if you as a retail trader got in on the right side of the move, it was more luck than a supply demand imbalance signal.  That's not to put it down because we all play hunches sometimes.  I'm just saying we can't make a living off of hunches.

The reason the markets are range bound is because of the U.S. Federal reserve talking head at 10:30 am est.  professionals always wait to see what the heads will say because, the only reason for publishing this type of data .  Unless, like the movie, " Trading Places," with Eddie Murphy, someone has slipped out the news in advance.

( Fed Chairman Bernanke Due to testify on the semi-annual monetary policy report before the House Financial Services Committee, in Washington DC;).  Oh really now.  And you just happen to want me, little ole retail trader whom you don't want to know shit about anything, but you want me to know monetary policy, and kind enough to publish it so all of us cattle can see...

Listen, any overnight moves up until that report is to suck in enough retail traders to make the decision on which way to take the market after the report.  More retailers long the market goes down.  More retailers short the market goes up.  How is in justified after the fact.  Well, "the comments were more hawkish than expected," or "the comments were more dovish than expected."  Here's the question...WHO DECIDES IF THE COMMENTS ARE EITHER OF THE TWO...?

Well it ain't us Mr./Mrs retail trader.  The whole purpose of publishing those meetings is...More retail traders long, Fed talks market down.  More retail traders short, Fed talks market up.  Sometimes the games get's really special and they do both, talk it up then, talk it down, then repeat that process, just to be sure they got your rent money, lol... Whatever method we trade WE MUST CONSIDER THE NEWS.  Traders hate to incorporate that into their analysis because, shoot, that just more work.  Man, I got into forex for some easy money and here you are telling me I have to think some more.  Besides, I only have a certain time I can trade and I have to get in  there...Listen, I feel you.  I've been there and want it like that myself but, year after year I've found that the markets don't give a damn about any of that.  Go figure...

Remember those old horror films where the guy who's the werewolf will have the girl he loves, lock him in a room so he can't get out and hurt anyone until the full moon us over with?  Well, you love yourself don't you?

There is a full moon at 10:30 am est.  Do you get my drift Mr. and Mrs. werewolf...

Now, I don't have to be right about it.  I only have to be AWARE of it.

Cheers, Jerry