Last few months created very unusual situation- rampant bear market. Just about every form and type of investment is in retreat. Stock markets are plummeting. One would expect commodities to get stronger, but just the opposite is happening. All metals have been falling, both precious and industrial. Even gold, which by conventional wisdom "should be" a safe heaven in times of distress, lost over 20%. Oil suffered a staggering fall from just under 150 to under 50. Case of most other physical commodities is largely the same. Real estate is in retreat everywhere and with interest rates falling to unheard of levels, even holding cash is no option to many people.
There was no escape from rampant bear in Forex markets. Virtually all currencies lost a lot of ground to US Dollar and Japanese Yen. While this may seem like a positive sign for both USA and Japan, it will likely put longer term pressure on already strained economies of these two nations, which are suffering from the same ailments as everybody else. Economists and market historians find current situation without precedent in modern history.
Our services had mixed results last week. Daily Euro suffered losses while Daily Pound produced good gains. Both systems are positive for November. See the results before and follow the link for details.
Next week is Thanksgiving in US. This means shortened trading week, and probably drop in volatility in all markets, as it typically is the case. With that in mind, we will suspend our services for both Thursday and Friday. All subscribers will be provided the details. We will resume updates on Monday, December the 1st.
From all of us here at Spectrum Forex LLC, we want to wish everybody great holyday. Happy Thanksgiving!
(Sunday 11.23.2008)
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Here are the results for last week:
- Daily Pound made 203 pips ;
- Daily Euro lost 102 pips;
Follow the link on the right to view details.
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Last week's results.
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Last week we featured possible trade in AUD-JPY. We planned entry on the long side at 65.80. This trade didn't happen. market moved substantially lower on the renewed weakness of Australian Dollar and strength of Japanese Yen. This trade is still valid and our order remains.
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There has a been a great deal of indecision and direction changes in currencies last week. Thursday and Friday were especially confusing. That was most notable in USD denominated pairs as the Dollar keeps changing direction, seemingly every few hours. There are a lot of conflicting news and fundamentals hitting the wires.
We think the trading environment will start changing a little this week. With holiday just around the corner, price will slow down and stabilize to some degree.
We will try buying EUR -USD. The set up is to go long 1.2647, with an objective of 1.2750, or about 100 pips. In our opinion this situation presents high degree of probability.
Happy Thanksgiving!
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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 .
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Risk disclaimer:
Substantial risk is involved. Forex trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex markets. Don't trade with money you can't afford to lose. Nothing in our website shall be deemed a solicitation or an offer to Buy/Sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of futures results. Trading involves high risks and you can lose a lot of money.
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