 | Hello again,
In our review of financial publications we have stumbled upon this interesting tidbit.
"Active Trader", March issue, reported on page 13 in a one paragraph article (?):
"Last year (2006)marked the first back-to-back down years for professional currency managers since 1993-1994. The Barclay's Currency Traders Index lost 0.81 percent in 2006, after 2005's 1.21-percent decline. Congested currency markets have been a major drag on trader performance".
Now, we are not sure how the Index is calculated or what type of traders/account managers it covers, but certainly gives you something to think about. However more interesting is the fact that in this short article there was a room for an explanation/excuse for why it happened. "Congested currency markets" are to blame.
Hmm, there were some healthy moves last year, even for people who use weekly charts for trading. Markets may seem "congested" only if you look at monthly or yearly charts.
Should one use those charts, that's not "trading" but investing. Regardless, maybe Forex is not such a gold mine if "professionals" can't make it?
How about us, professional of lesser pedigree, not covered by prestigious Indexes and mainstream press?
Last week was a mixed bag for us. All three services had a positive week but with varying degree of success. "Daily Pound" made money only Monday and then had small losses the rest of the week. Strangely enough there was very little movement during European hours for GBP-USD. It will change. "Daily Euro" continued it's small but steady gains. We think that EUR-USD will see increase in volatility over next few weeks, adding to daily moves. Now, "Rainbow" had a good week, producing just under 500 pips in closed profits. That's in spite of some blunders on our part earlier in the week.
We have one position opened going into the weekend. See the results and link below. |
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Here are the results we achieved last week:
- Rainbow made us 492 pips in closed trades;
- Daily Pound earned 38 pips;
- Daily Euro gained 28 pips for the week;
Follow the link on the right to view details |
Last week's results. |
Last week we featured a potential trade in USD-JPY. We were looking at either a simple longer term BUY or waiting for shorter term BUY signals. We did both. First chart covers two trades we called for in our "Rainbow" service. First one netted 31 pips and the second one later in the week produced 124 pips.
Second chart shows our entry for much longer term trade. We entered it late Sunday our time, after additional JPY run early in that session, at 115.77. We still carry that trade. It was not a part of any of our services, we took it to document our call for longer term move. |
This week we are taking a look at EUR-USD. It's been a long time since we took a trade in this cross. It's been very slow lately. We think it's about to change, as was mentioned at the top of this report. We placed a SELL order at 1.3060 with a target of 1.2980 and potential second target of 1.2920. Our time frame here is 2-3 weeks but hopefully sooner.
We wish everybody great trading and see you next 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 . |
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