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Monthly Archives: September 2012

Well Its Official Quantitative Easing Is Going To Happen

The long awaited news on Quantitative Easing is finally out and QE is going to happen. The Fed have stated that they will be pumping 40 billion per month into the US economy. With what they already pump in that will take the total to around 80 billion per month. These numbers are mind boggling if you ask me. The richest man in the world is worth around 80 billion, so that gives you some idea of the money they are pumping in.

We had a great long set up on EJ yesterday, but we did not take it because if triggered right at 5.30 as the news was coming out. I don’t trade through the news so we stood down. If we had taken the trade we the trade would have paid out 150 pips so far.

On a positive note we did take one trade yesterday before it all kicked off. It was a Euro short trade. The entry was at 12928 and exit was at 12889 for 39 pips.

After this big move up over the last week, i am looking for short trades again today. This move up has to be corrected today. The Euro has moved up over 600 pips in the last few weeks without any serious retrace, so it has to come back at some point in my opinion. Friday is usually a squaring off day for brokers so i am expecting a substantial move down today at some point.

If you are in the markets, have a great trading day.

3 Trades Today 124 Pips Profit.

Pretty crazy day today. The Euro news sent the price down and then up. I was very fortunate to be holding short trades at the time of the news, and 2 of my shorts hit target on the spike down. My short on Euro that i put on last night at 12866 hit my target of 12824 for 42 pips. I also entered Euro short again this morning before the news at 12879 which also hit 12824 for 55 pips. On the spike back up i entered Euro again at 12907, this trade went against me initially but came back and hit my target of 12880 netting me 27 pips.

The short trades on Cable and AUD that i put on yesterday were stopped out for 30 pips and 15 pips.

Total profit for the day was 79 pips. 🙂

More market moving news out tomorrow, when Ben Bernanke decides if the US is going to do QE. I think QE is already in the price so if he does not decide on QE watch out for the fireworks.

Dollar Weakness Sparks Rally In Euro Cable And AUD

With the weak numbers out of the US yesterday QE is looking very likely. The FOMC meeting this week should confirm that QE will happen. This news along with talk of a possible downgrade by Moody’s in 2013 has weakened the dollar significantly today, and we have seen a big rally in Euro Cable and AUD.

We have not taken any trades today as we have not had any set ups. Its a shame we did not go short US dollar as we would have had a good day, but if the set ups are not there we don’t trade. I have put a short on Euro at 12866 with a target of 12824. I also have a short on Cable at 16070 with a target of 16040. I also have a short on AUD at 10425 with a target of 10404. With a bit of luck these targets should be hit in the Asian session, or early UK session. I don’t normally rollover trades, but i think we have seen the top of this move up for now, and it would be nice to get some pips in the bank this week.

I will be looking for short trades tomorrow as i think we are due a dollar correction. Even with QE i think the dollar has been sold down too far, and will get stronger as the week unfolds.

Forex Trading On A Monday

Another very slow day today. Pretty typical of Forex trading on Monday’s of late. AUD gapped down yesterday and then quickly filled the gap, it proceeded to move down for most of the day today, after the big move up on Friday. I took one little trade short on the AUD for 14 pips, and that was about it for today.

I think AUD has got a bit further to go down yet. I also think Cable and Euro are due a move down.

I have some targets that should get hit this week. I will keep you posted on developments. Have a good trading day.