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May 31, 2010


Hey There Traders!

Wow, it's been quite a long time, but I'm back in blogging/trading action. Life is complicated for all of us, and I found in necessary to relax on publication/blogging and just focus on my own personal trading for a while.  In doing so, I have been able to catch up on all sorts of things, renew my commitment to helping others succeed, and help plan my fast approaching WEDDING! Yeeeeep, that time. : ) I am still focusing on primarily spot FOREX, FX Futures, and some basic commodity stuff.

Tonight's tips:

GBP/JPY: strong resistance is showing around the 133.00, shorts are recommended at this level, unless 133.00 is TAKEN OUT and HELD. I would say 133.50 would need to be taken out and held with conviction for any longs to be in order. Otherwise, stay out, or set your limits above the market near the 133.00 area or set some sell stops below the market support around 131.25-131.75.

GBP/USD: similar take as GBP/JPY, but a bit more bullish on the potential for break out. All of the JPY and USD pairs have great short interest at the moment, so that can be a blessing and a curse if improperly perceived.  I would say follow Euro action for any GBP/USD 'sympathy moves'. The GBP/USD needs to break and hold the 1.4540 area with conviction for any longs to have serious contention.

EUR/USD: failing at all major resistance areas, what's new? Yea, TONS OF SHORTS, but guys/gals, please realize that some of the most intense moves happen amongst the most intensely overbought/oversold conditions.  This does not mean short the Euro here if you are flat, but it does mean that if you are short from above or have a significant lead, you can consider adding on strength/retrace to resistance, or pyramid your position as it moves in your favor, NOT BEFORE. Do not confuse this with setting limit short orders above the market as the natural waves move price up and down between resistance and support. This just means that you should not be adding to a loser, even if you are sure it will come back down. Losers average losers. We don't do that, but we do exercise patience, identify where the losing trader is entering the market, and then we take the other side.  I would let the Euro breathe here, watching the US futures, oil, and gold while doing so, but keeping in mind that ultimately the fundamentals of Europe almost require a parity value between the Euro and the USD. We shall see moving forward....

Feel free to contact, aloha!