Weekly review 6/20/2010

Greetings everyone,

As we do every week, we are going to review our trades over the last week and we will start our review with Forex trading.

FOREX

Trades this past week:

Results by technique:

EU	US
35	-47
-63	-47
30	65
80	-53
60	60
1
143	-22

We’ll take this opportunity to remind you we have two trades that remain open, as you can see in the list of trades above.  They are both shorts: one for the GBP/USD at -10/15 pips and the other for the EUR/JPY with +15/20 Pips when the market closed.  This week, we have continued to improve our results with respect to the European Morning trade of the Pound. Almost one month ago, we reached our DD and we advised that there was a high probability we would rebound and start to make gains, given the stagnancy we had been experiencing for months, and that is just what happened.  Now, we are closing in on our high for the year, which we hope to break, and we expect the European Morning technique for the Pound will begin to really give us positive results.

European Morning Gbp/Usd Drawdown

 After our long trade was fulfilled and we made it within 5 Pips of the target, where we would have made 65 Pips, strangely, the price dove to our stop, which was triggered by only 5 Pips, for a loss of -53, and later the price went up to hit what was our target. Because of that trade, we ended the week down -22 Pips for the USA Morning instead of up +96 Pips. Of course, we can’t complain about the week because, as those who have been following FX for several months know, this year we have experienced trade losses by only 1 Pip. But, as you know, our philosophy is to NOT modify our entry prices, targets or stops once we send them.  This philosophy allows our subscribers to not have to be checking their email all day.

On Friday, we expected a lot of movement after futures and options had expired for the European markets but, surprisingly, that is not what we found.

Friday’s Eur/Jpy session (times GMT +1).

It was one of the most stagnant sessions – a range of only 30/50 pips – for a day with expirations in the last 3 years. Therefore, we continue with our shorts waiting to find out what will happen when the market opens Sunday.

FX 2010 Summary

EUR		US
GBP/USD	EUR/JPY	GBP/USD	EUR/JPY	CAD/JPY	OTHERS	DISCRETIONAL
-52	326	-207	303	151	60	50

FUTURES & STOCKS

Now we will review futures and stocks.  This week, we gained 6.25 points for the Sp, the equivalent of $312.50 per contract, with the following trades:

 It was not an easy week to trade the SP as we will see when we review all of our possible trades.

 For the current quarter for the MiniSP, we have gained $725 per contract with 24 positive operations versus 12 negatives ones.  We have achieved this overall gain in spite of poor results for Evening technique which has registered a loss of -9.75 points, or $487.50.

Have a great weekend.