Today 2 trades, +65 Pips
Monday, August 30, 2010
Sunday, August 29, 2010
Weekly review 8/29/2010: +10 points in the Dax (250€ per contract), +33 Sp ($1,650 per contract), +127 pips Forex
Greetings everyone,
As we do every week, we are going to review our trades over the last week and we will start our review this week with futures and stocks.
FUTURES & STOCKS
We again had a very good week for both the Dax future technique and the Sp. For the Dax this week, we only made one trade for a gain of 10 points or 250€ per contract. As you can see, for August to date, we have only made 6 Dax trades, which is much less frequent than last year when we had 15 signals. But, this summer, the market is nothing like last year.
In any case, once the summer has ended, the market will surely recover. In any case, eventhough we operated the Dax infrequently in August, our gain of 75.5 points or 1,887.50€ per contract more than pays for our services.
Below are the statistics of the technique from March, 2009, until July, 2010, when the technique would have registered a gain of close to 3500 points which, given that every Dax point is worth 25 euros, represents a gain of 87,500€ ($118,100) in one year and three months.
MiniSP
With regards to the MiniSP, our results for this past month have been spectacular. We executed 81 positive operations against only 4 negative ones for a total profit of 142.75 points ($7,137.50 per Sp contract).
Week | Positive | Negative | SP Points |
26-30 Julio | 10 | 1 | 19 |
2-6 Agosto | 18 | 1 | 27.5 |
9-13 Agosto | 13 | 0 | 15.75 |
16-20 Agosto | 26 | 1 | 47.5 |
23-27 Agosto | 14 | 1 | 33 |
TOTAL | 81 | 4 | 142.75 |
If you take under consideration that we have made these gains in August, when volumes are low, we consider these to be very good results. And while we have market volatility, we expect these results to continue.
Look at the results for the week below and you’ll see that our results were great despite the fact that we operated well through Wednesday and we only made one trade between Thursday and Friday.
Therefore, we just closed ANOTHER really good week for futures: we made 250€ for the Dax with one trade and, for the Sp, we gained 33 points this week. The Sp gain for the last 5 weeks is 142.75 points or $7,137.5 per contract.
FOREX
These were our operations for this past week:
We also had a good week for FOREX with a gain of 127 pips with only 5 trades; 3 positive operations versus 2 negative ones.
Have a great weekend!
Wednesday, August 25, 2010
Wednesday's Summary (all gains): +10 Dax ($317.50), +4.25 Sp ($212.50),. +110 pips Forex
Good evening,
This morning, we gained 10 points with the Dax technique when we hit the stop profit we had set. The target was 31 points and, although in the end they were achieved, the market made some strange movements between 1051 and 1052 at the opening, like the Sp did yesterday, and this made us decide to define a stop profit, which was hit by 2 points before making the target. We even considered closing the operation, once the gap had been covered, for a gain of 21 points because last week, on two occasions, the price made it to within 2-3 points from covering the gap only to then go the other way. But, what matters is we have made 12 positives against only 3 negative ones and we have gained 160.5 points this month for the Dax (4,012.50€ or $5,095.87 per contract).
For the Sp this morning, we had one negative operation and one positive one for a loss of -0.75 points. At the opening, we gained 5 points. For the week, we have executed 14 trades for a gain of 33.75 points for the Sp. We did not operate the evening technique as the market was stagnant.
For FOREX, today we execute two European Morning trades: one Eur/Jpy long which closed for a gain of +50 Pips and the other Gbp/Usd long which hit the stop by only 2 or 3 pips for a loss of 30 pips, only to later rebound and remain for the rest of the day above our entry price (bad luck). For the USA Morning, we execute one trade, +90 pips in the Eur/Jpy.
Tuesday's Summary: +17 Sp points; +50 pips Forex
Good evening,
Yesterday, we made 12.5 points with 3 trades for the Sp and today went even better with 17 points from 6 trades. Therefore, our statistics for the week to date are 9 trades for a gain of 29.5 points.
We did not operate the Dax technique as the gap was very small.
For FOREX, the Eur/Jpy short for the European Morning technique hit the target for a gain of +50 Pips.
Monday, August 23, 2010
+10 poins in the Emini in the Opening 1079-1069, 500$ per contract
Today 3 trades +12.5 points +625$ per contract.
Sunday, August 22, 2010
Weekly review 8/22/2010
Greetings everyone,
As we do every week, we are going to review our trades over the last week and we will start our review this week with futures and stocks.
FUTURES & STOCKS
DAX
We just completed another excellent week for both Dax and Sp Futures. Last week, we made 40.5 points (1,012.50€) for the Dax. This week, we only made two trades but they added up to 15 points (375€). For the month of August, we have made 65.5 points (1,637.50€ per contract) for the Dax with the following operations:
August is not the best month to execute this technique as there usually is not an opening gap for the majority of sessions. Never-the-less this past week we executed two positive trades with some very attractive benefits.
SP
With regards to the MiniSP, our results for this past month have been spectacular. We executed 67 positive operations against only 3 negative ones for a total profit of 109.75 points ($5,487.50 per Sp contract).
| Week | Positive | Negative | SP Points |
| July 26-30 | 10 | 1 | 19 |
| August 2-6 | 18 | 1 | 27.5 |
| August 9-13 | 13 | 0 | 15.75 |
| August16-20 | 26 | 1 | 47.5 |
| TOTAL | 67 | 3 | 109.75 |
If you take under consideration that we have made these gains in August, when volumes are low, we consider these to be very good results. And while we have market volatility, we expect these results to continue.
LAST WAVE
We did not trade this technique this past week and we probably won’t trade it until the end of August as closes have been flat and there is no force in the market to allow large variations in the stocks we would recommend. We have been trading this technique in our Spanish web since 2005 and we have never traded it in August although, this year, we will execute an operation only if we see a clear opportunity. In other words, we won’t trade just to trade.
Therefore, we just closed ANOTHER really good week for futures: we made 375€ for the Dax with two trades and for the Sp we gained 47.5 points this week. The Sp gain for the month is 109.75 points or $5,487.50 per contract.
FOREX
These were our operations for this past week:
Have a great weekend.
Thursday, August 19, 2010
Thursday Summary: +19 for Sp ($950 per contract)
We had a great day trading MiniSP futures with a gain of 19 points ($950/contract) from 6 operations. For the week, we have executed 21 trades, 20 positive and 1 negative, for a gain of 41.5 points ($2075/contract) with the following operations:
This morning, there was no Dax trade due to a lack of range at the opening.
With regards to FOREX, we only operated the European Morning Technique, hitting the stop for the shorts when England reported that retail sales will rise 1.1%, when the market expected a rise of only 0.4%, making the pair rise more than 100 pips in one minute. It was a shame as the technical aspect of the short was very good.
Regards,
Daily Market Advice
Wednesday, August 18, 2010
Wednesday Summary: +9 for Sp and +10 for Dax +60 Gbp/Usd..
Good evening,
Today we executed 4 Sp operations for a gain of 9 points. For the Sp this week, we have made 15 trades, 14 positive and 1 negative for a gain of 22.5 points or $1,125 per Sp contract with the following operations:
This morning, we made 10 points (250€ per contract) trading the Dax. For the week, we have gained 375€ per contract and for the month of August we have gained 60.5 points (1,487.50 €). Remember, the Dax trade is at 8 am from our Trading Room.
With regards to FOREX, today the long trade for the Gbp/Usd pair of European technique hit the target for a 60 pip gain. As you know, while the market is week, we are only going to execute operations with the best possible risk/reward ratio. During the last couple of USA
Regards,
Daily Market Advice
Tuesday, August 17, 2010
Tuesday Summary: +5.5 points for the Sp & +5 points for the Dax
Good evening,
The start of this week continues to go well. We gained another 5.5 points with 4 trades during the Opening of the Sp which means we have made a total of 11 Sp trades this week, 10 positive and 1 negative, for a gain of 13.5 points or $675 per contract. These were the trades:
For the Dax this morning, we made a gain of 5 points or 125€ per contract. We had gained 40.5 last week, therefore, for August to-date we have made a total of 50.5 puntos (1262.50€) for Dax trades. Remember the Dax trade is at 8 am from our Trading Room.
With regards to FOREX, the market is still lacking a bit of strength. We only traded the European Morning technique today. We had a stop profit for the Eur/Jpy long for a profit of 10 pips after coming to within 10 pips of the 50 pip target, and we had a stop for the Gbp/Usd where we also traded long.
Regards,
Daily Market Advice
Monday, August 16, 2010
Yesterday Summary: +8 points for Sp ($400/contract)
Good evening,
We’ve started the week for the Sp in the same place we ended last week, even though the market in August has low volume and tendency.
Today, we executed 7 Sp trades, 6 positive and 1 negative, for a gain of 8 points or $400 per contract. For the quarter, we have 47 positive trades versus 3 negative ones for a gain of 66.75 points or $3,337.50 per contract.
There was no signal for the Dax trade this morning as the opening gap was smaller than necessary to generate an operation. With regard to forex, this morning we experienced a bit of bad luck for the Gbp/Usd short. We came within 2 pips of the 50 pip target only to have the price rebound and hit the stop.
Regards,
+4 points in the opening MiniSP, $200 per contract
In the opening Emini, 2 trades, one positive and one negative. +4 Points +200$ per contract
Sunday, August 15, 2010
Weekly review 8/15/2010
As we do every week, we are going to review our trades over the last week and we will start our review this week with futures and stocks.
FUTURES & STOCKS
DAX
As we commented last weekend, this past week we introduced our new German futures trading technique in the Trading room. This trade is perfect for European and Asian residents because of the trading time which is at the opening of the German Dax at 2am EST (8am GMT +1). The technique is based on gaps in the opening of the Dax.
This past week, this technique gave us 2 trades which, in turn, earned us 40.5 points or 1.012.5€ ($1,316.25).
This past Friday, we didn’t place a trade as we doubted about the outcome but it turns out it would have been positive for another 30 points.
Below are the statistics of the technique from March, 2009, until July, 2010, when the technique would have registered a gain of close to 3500 points which, given that every Dax point is worth 25 euros, represents a gain of 87,500€ ($118,100) in one year and three months.
August is not the best month to execute this technique as there usually is not an opening gap for the majority of sessions. Never-the-less this past week we executed two positive trades with some very attractive benefits.
Let us remind you of the main characteristics of this technique:
This technique provides us with a trade if the Dax future opens with a gap at least 10 points larger than the previous day’s close. Normally, we set a target of the gap’s close plus 10 points with a stop equivalent to the gap size. If we hit the stop, we open a contrary position with a target of the gap plus 10 points.
Let’s review the following example:
Let’s imagine the Dax closed yesterday at 6300 points and today is opening at 6320.
The technique would call for us to trade short at 6320 points with a stop at 6340 points (20 points – the size of the gap) and a repurchasing target at 6290 points (20 + 10 points).
If we hit the target of 6290, we would gain 30 points and the trade would end for that day.
On the other hand, if we hit the stop at 6340, we will open a long position with a target of 6370 and a stop at 6320 points.
In case you aren’t sure you’ve correctly understood this example, every day we will clearly publish the signals from our trading room.
SP
With regards to the MiniSP, as of three weeks ago we have been placing Sp trades from our Trading Room in the private part of our web. The following are our results since we began to publish signals for this technique via the Trading Room. We executed 41 positive operations and only 2 negative ones for a gain of 62.25 points in three weeks which represents a monetary profit of $3,112.50 per contract.
Week | Positive | Negative | SP Points |
July 26-30 | 10 | 1 | 19 |
August 2-6 | 18 | 1 | 27.5 |
August 9-13 | 13 | 0 | 15.75 |
TOTAL | 41 | 2 | 62.25 |
Given that these gains were made in August, that this past Tuesday there was a Fed meeting, that Monday we only were able to make 0.25 points and Tuesday only 2 points, we believe these are excellent returns. And these returns should only improve when market volume rises.
LAST WAVE
We did not trade this technique this past week and we probably won’t trade it until the end of August as closes have been flat and there is no force in the market to allow large variations in the stocks we would recommend. We have been trading this technique in our Spanish web since 2005 and we have never traded it in August although, this year, we will execute an operation only if we see a clear opportunity. In other words, we won’t trade just to trade.
Therefore, we just closed ANOTHER really good week for futures and stocks: we made 1,012.5€ ($1,316.25) for the Dax and a 15.5 point gain for the Sp. For the SP over the last three weeks we have gained 62.25 points or $3,112.50 per contract.
FOREX
Now let’s review our week in Forex.
Trades this past week:
We had a good week with 5 positive operations and no negative trades for a gain of +145 Pips. This past week, the pairs had tendency which we had been hoping for. This allowed us to break the lateral market which only permitted us to enter at the same level each day.
As we continue to work on the improvements we will put to work soon, we encourage you to take a look at the futures markets. This month and only from signals from the trading room, we have made a profit of $2,000 for the MiniSP. It is one of the futures with the greatest liquidity. The guarantees necessary to operate with it are between $500 and $3,500 depending on the broker. Obviously, it is not FOREX in that the economic requirements are somewhat superior. Never-the-less, we try to be where the money is. By the way, speaking of where the money is or where it is going, this week we read two interesting articles; one bad and one good. Or so they say because they both may be horrible...
The “good” news; FOREX volume increases and returns to pre-crisis levels.
Foreign Exchange Committee Releases FX Volume Survey Results.
– The Foreign Exchange Committee today released the results of its twelfth Survey of North American Foreign Exchange Volume. For the April 2010 reporting period, key findings are featured below.
Average daily volume in total over-the-counter foreign exchange instruments (including spot transactions, outright forwards, foreign exchange swaps, and options) totaled $754 billion in April 2010, up 11.8 percent from the $675 billion reported in October 2009 and just below the record $762 billion reached in October 2008.
Following the sharp decline in turnover evidenced in the April 2009 survey, average daily volume has resumed its historic upward trend, with rising volume across all instrument types and execution methods as well as most counterparty types and currency pairs.
Average daily volume in spot foreign exchange transactions rose relative to the prior survey, but remained below the record reached in October 2008. Average daily volumes in both outright forwards and foreign exchange swaps, however, registered new highs of $104 billion and $203 billion, respectively, in April 2010.
Since the survey’s inception in 2004, the average trade size declined steadily from $4.3 million to roughly $1.8 million in October 2008. It has remained near this level in all subsequent surveys.
After the dive in October, nothing was the same; not for FX, not for any other market and not for the “real” economy. This was the good news (it is really not good and later we’ll explain why). And now, the bad news. Many of you read us from the USA or Asia where there are many new regulations such as leverage reduction, hedge prohibition (long and short for the same pair), etc.
The bad news; Obama wants to prohibit the FX Spot.
Obama Threatens Forex; Says Goodbye to OTC Gold Trading
James identified four key points which may severely affect OTC forex in the US
- Elimination of OTC Forex: Effective 90 days from its inception, the Dodd-Frank Act bans most retail OTC forex transactions. Section 742(c) of the Act states as follows: “…A person [which includes companies] shall not offer to, or enter into with, a person that is not an eligible contract participant, any agreement, contract, or transaction in foreign currency except pursuant to a rule or regulation of a Federal regulatory agency allowing the agreement, contract, or transaction under such terms and conditions as the Federal regulatory agency shall prescribe…”
- Elimination of OTC Metals: As for OTC precious metals such as gold or silver, Section 742(a) of the Act prohibits any person [which again includes companies] from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis. This provision intends to expand the narrow so called “Zelener fix” in the Farm Bill previously ratified by congress in 2008. The Farm Bill empowered the CFTC to pursue anti-fraud actions involving rolling spot transactions and/or other leveraged forex transactions without the need to prove that they are futures contracts. The Dodd-Frank Act now expands this authority to include virtually all retail cash commodity market products that involve leverage or margin – in other words OTC precious metals.
- Small Pool Exemption Eliminated: Pursuant to Section 403 of Act, the “private adviser” exemption, namely Section 203(b)(3) of the Investment Advisers Act of 1940 (“Advisers Act”), will be eliminated within one year of the Act’s effective date (July 21, 2011). Historically, many unregistered U.S. fund managers had relied on this exemption to avoid registration where they: (1) had fewer than 15 clients in the past 12 months; (2) do not hold themselves out generally to the public as investment advisers; and (3) do not act as investment advisers to a registered investment company or business development company.
- Accredited Investor Qualifications: Section 413(a) of the Act alters the financial qualifications of who can be considered an accredited investor, and thus a qualified as eligible participant (“QEP”). Specifically, the revised accredited investor standard includes only the following types of individuals: 1) A natural person whose individual net worth, or joint net worth with spouse, is at least $1,000,000, excluding the value of such investor’s primary residence; 2) A natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with spouse in excess of $300,000 in each of those years and a reasonable expectation of reaching the same income level in the current year; or 3) A director, executive officer, or general partner of the issuer of the securities being offered or sold, or a director, executive officer, or general partner of a general partner of that issuer.
Talking to Bart Mallon from Mallon P.C. it seems that there is actually little new in this bill and that the CFTC will need to complete its own rules within the next 2.5 months or so. These rules include the infamous leverage and guaranteed IB requirements however Bart feels that the final rules will not be as bad as some may think.
Whatever the case is I advise US forex traders once again to shift their accounts to more sane regulatory locations, as even Obama himself may ‘have a tooth against’ retail forex. I wonder which broker hunted his stops.
You can find more information and opinions at http://forexmagnates.com/obamas or http://www.fxstreet.com/education/markets-regulation/obama-forex-otc-gold-trading/2010-08-05.html.
Let’s return now to the question of volumes and analyze if it is good or bad news. If we keep in mind that these volumes have increased due to desperate bank interventions - USD/JPY AT HISTORIC LOW, EUR/USD PUSHED TO 1.30, NATIONAL SWISS BANK INTERVENED AND LOSING 14 MILLON FRANKS (APPROX. 13 MILLON DOLLARS) - is the recovery of volume really "good news"? Whose money is increasing these volumes? It is definitely not coming fro the majority of investors or speculators like us.
Does this mean that we are doing well and the economic recovery has started? You be the judge. But this money is coming into Fx only to avoid the unavoidable… The US
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