MARKET UPDATE 1

Hi

I've been quiet on the updates so far this week because I've been focusing on the trade alerts.  The alerts so far this week have been based on the daily Lcm unplugged signals.  The idea is that once the position is in profit based on the daily entry, I would like to protect the positions from an intraday perspective once the trade is in profitable territory.

However, the tecno gremlins are at my throat and the alert system is not functioning.  In addition to the mt4i site where you can see a copy of the trades in real time ( 1 minute delay ) whenever I place an order, the system is also supposed to send you an email alert whenever I execute an order.  So, far this week it has not worked and I've been spending most of my time frantically trying to get it to work.

So, since I can't get the trade adjustments out to you via email the way it's supposed to work I have been having to let the daily stops and targets ride.  

This weeks trade alerts have been based on momentum only and thus, the positions first show a profit of 30 to 50 pips before a pullback reaction takes place.  This intraday reaction is where we want to look to protect our position on the 4 hr or 1hr bases.

Also, I am sending out all signals regardless of filters such as indicators and trend.  That means the trades are not indicative of my actual account trading because I generally balance my portfolio.  I do not care how many pips I make on any single trade I am looking at the cumulative.

For example, if your goal is 50 pips per day and you are in 5 positions, why not exit all trades once the cumulative pip total is 50.  That's just one way to play it.

I am giving signals on most of the pairs because everyone has different pairs they feel comfortable trading and Lcm in not a one pair pony.

Bear with me, I'm working on that email problem but it appears to be a network problem or should I say, those within the network.

Cheers, Jerry

jerry@forextradingmajic.com

Jerryjstew@yahoo.com

MARKET UPDATE 2

QUESTIONS AND ANSWERS: TRADE ALERTS:

I would like to know is necessary to trade all the currency you had sent to have a good results, or if i trade some of them is enough. I am asking it for you because you have alot of experience and to hear it from you can give me confidence.

key is called: Right Side Trading

Now way do you have to trade them all and I don't suggest that you do.  What you want to do is disversify between the majors, USD, GBP, EUR, JPY.

Concentrate on right side trading. If you have one position for each of those you will be diversified.  When I say right side trading I mean you want the pairs above to be on the right side of the price quote.  For example, eur/usd ( usd is on the right side of the quote and eur the left side.  But for the pair usd/jpy, the dollar is on the left side and the jpy is on the right side.  If you have at least one position on the right side for each of the big 4 pairs you will be diversied.

If not you will end up with too many positions in one currency.  you don't want to be long the Gbp/usd and the Eur/usd at the same time because the usd is on the right side of both of these currency quotes.  That means you have doubled your risk in the usd.

CHEERS, JERRY

JERRY@FOREXTRADINGMAJIC.COM

JERRYJSTEW@YAHOO.COM

MARKET UPDATE 1

I am expecting gap opens in most of the pairs today at Sunday's open.  I feel that price on the majors was artificially kept in check due to lack of participation from retail traders.  They are all still positioned from Thursday ( greed ), and not a whole lot on the sidelines left waiting to buy the market up.  The market needs some profit taking in order to breath.   Friday's action was equivalent to the market holding it's breath.  You can only hold your breath for so long and something has to give, and it's usually a burst of an exhale.  First you must exhale before you can inhale more air.

On a more material level, the herd needs to be spooked into action.  They are sitting fat from all that grass they ate on Thursday.  If I'm a predator it's prime time.  Attack'em while they are full, fat, and slow.  That's just my theory based on natural or which, humans simply are involved in the execution of the natural law on an unconscious level.  Cause we are the market.  We must breath to survive and so must the market.

Now you know why I expect gaps.  To release pressure which has been artificially built up BY PINCHING THE HOSE.

Not saying it has to happen but, the stage is set...

CHEERS, JERRY

JERRY@FOREXTRADINGMAJIC.COM

JERRYJSTEW@YAHOO.COM

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