 | Hello,
Welcome to another installment of our "Weekly comments". What's going on with Forex markets? After decent moves a week ago looks like they went into a slumber. At least the majors. Some kind of delayed winter hibernation. Well, we can wait it out. In the meantime, some of the crosses sprang to live, so it pays to be vigilant and give attention to more than just EUR-USD.
More on that farther down this page. Something interesting came across my desk recently. We subscribe to a wide variety of industry publications. I make myself read them, even though most of articles are some kind of newer version of something that has already been beaten to death. Anyways, one of them is "Active trader". It's decent enough magazine, a monthly. Well, February issue had an interview with one David Aronson who has just published a book "Evidence-based technical analysis". In short, he claims that there is no scientific basis to believe that technical analysis works. He ran some 6400 technical rules and systems against 25 years of S&P 500 data and claims that any winning approaches are simply a reflection of a very long term Bullish bias in an underlying instrument and not any value in the approach itself. In other words, technical analysis is not worth even the paper his book was printed on.
I guess that would apply to commodities also, as over decades they are also biased to the upside. He doesn't mention Forex, but what about it? As one currency gets stronger another gets weaker and I don't see how there can be the kind of bullish bias as could possibly exist in other instruments. Does it mean we should just close the shop and enter janitorial business? We'll wait until some stronger evidence emerges.
January is over and first report cards of 2007 are in. How did we do? While the last week was slow and unimpressive for us, the month was good. So here we go;
"Daily Euro" made 201 pips in January;
"Daily Pound" was up 325 pips for the month;
"Rainbow" gained 1288 pips in this period.
We are pleased with the results. Follow the links below to see all the details. |
|
Here are the results we achieved last week:
- Rainbow made us 152 pips in closed trades;
- Daily Pound lost 29 pips;
- Daily Euro earned 6 pips for the week;
Follow the link on the right to view details. |
Last week's results. |
Last week in this section we featured a possible trade in AUD-NZD. As it turned out that was on of the crosses that showed some signs of life when the majors slowed down. Our set up was to go LONG at 1.1170 with a target of 1.1220. As you can see after couple days of waiting it worked out very nicely indeed. Trade was over in 2 hours. Those who decided to hold it longer, did very well. But not us. We just collected 50 pips as the set up called for. Here's the chart. |
Next week's trade will likely take longer to play itself out. So if you don't mind 3-4 weeks in a position, take a look at this. We are watching USD-JPY with a possible SELL at 120.04. Our target here is 118.20, IF the trade takes place. probabilities are high here. Time will tell.
Take a look at this "Hungary's millennium" note. Very, very stately.
On this note(he,he), we wish everybody a great trading week! |  |
Once again we must stress that the trades highlighted here are only a small sample of our trades. If you have any comments or would like to obtain more information please contact us at info@spectrumforex.com . |
|
