A very good morning to all you dynamic traders today. What a good day yesterday was for shorting. Of course if you were caught on the long side of certain currencies it would probably be a day you would rather forget. Either way, many more opportunities will become available so do not get complacent or disheartened.
Yesterday 1.2 trillion dollars was wiped off the Dow Jones which is almost the daily traded amount on the forex market - the worlds largest market. I might add the amount of the decline yesterday is larger than the bailout figure. Makes you wonder if the bailout will benefit the markets in the long term. American's are frightened for their futures with what is going on here in the U.S. Anyone thinking we are oversold and are in a buying zone based on the indices and stocks having moved down so much are wrong! We are not in a buying area although as Javid's forex blog suggests we could have a relief rally this is not a buy zone. This is where the dumb money start to lose their trading accounts so if you trade stocks or indices then think again before buying into stocks on anything more than a day trade basis.
Watch oil as it is looking bearish. We could see oil fall down substantially if it does not manage to bid above major resistance levels. You can see the chart on Javid's Daily FX.
Below is a weekly chart of the GBPCAD which has broken through it's previous low but it could be a fake breakout. As present the price is just below the figure with a convergence. If you perform your analysis as shown on the webinars to find an entry then use a different time frame. The chart is showing signs of a bounce but if it continues it's breakdown and travels further down then we can take the short selling opportunity otherwise. Wait for the signal.
You can read Javid's forex analysis here.
Yesterday we drove from Atlantic City to New Your City and went up to the top of the Empire State Building. For anyone who has not already gone to the top and is going to in the future, I highly recommend getting an Express pass. It is not really promoted so you will need to tell a staff member you want an Express pass and that gives you free passage without the queuing and waiting. It is just over double the amount though and the regular price is $18. Some people were waiting for almost 2 hours where a we were taken to the top in less than 15 minutes and you get priority when coming back down again.
Good trading...
Anne Chapman
Currency Analyst
Chart courtesy of Advanced Get. Powered by eSignal.











