Tuesday, May 23, 2006

Traders Helping Traders Daily Update for Tuesday 5/23/06

Traders Helping Traders Market Update for Tuesday, May 23, 2006

1: CURRENCIES

June Australian Dollar ADM6
The AD fell to the 38% retracement today. We're technically in bear country so buying tomorrow would be considered countertrend; however given what has happened in the other currencies today I think we could see a rally tomorrow.

*BUY June Australian Dollar at 7553
*Exit Stop: 7507
*Approximate Risk Exposure: $460 per contract
*Profit Target: 7789
*Potential Profit: $2360 per contract
*RRR: 5:1
*Degree of Risk: Moderate

June British Pound BPM6
It's a touch on the risky side since today's support didn't really have anything to back it up; however the trend is strong so I'm not going to be picky if the market wants to reverse from here.

*BUY June British Pound at 189.27
*Exit Stop: 188.33
*Approximate Risk Exposure: $587 per contract
*Profit Target: 192.43
*Potential Profit: $1975 per contract
*RRR: 3:1
*Degree of Risk: Moderate to HIGH

June Canadian Dollar CDM6
The CD took a good bounce off the 38% retracement line today. I'll leave it alone tomorrow and hope for a smaller range.

June EuroFX ECM6
I'd be lying if I didn't say I was a little nervous about buying the EC tomorrow. The right time to buy it was today (obviously); however I wasn't expecting such a strong session to start the week. We will need another strong move tomorrow in order to avoid a whipsaw.

*BUY June EuroFX at 129.51
*Exit Stop: 128.97
*Approximate Risk Exposure: $675 per contract
*Profit Target: 132.97
*Potential Profit: $4325 per contract
*RRR: 6:1
*Degree of Risk: HIGH

June Japanese Yen JYM6
Same deal for the Yen. The market is showing us some support today which could allow us to buy the market higher tomorrow; however after today's big range this could be VERY risky.

*BUY June Japanese Yen at 9031
*Exit Stop: 8987
*Approximate Risk Exposure: $550 per contract
*Profit Target: 9297
*Potential Profit: $3325 per contract
*RRR: 6:1
*Degree of Risk: HIGH

June Mexican Peso MPM6
You might have voided the short trade this morning because of the opening gap, but if you ran with it you're currently short. Be sure to bring your stops in above today's high in case we get a reversal off the iffy close.

June Swiss Franc SFM6
I'm certainly kicking myself for passing on the currencies today, but in all honesty I wasn't expecting these kind of ranges. This will make buying the market higher a little more risky than I would have liked, but we've got resistance at 8320 which will be suitable support for our long position.

*BUY June Swiss Franc at 8363
*Exit Stop: 8319
*Approximate Risk Exposure: $550 per contract
*Profit Target: 8593
*Potential Profit: $2875 per contract
*RRR: 5:1
*Degree of Risk: HIGH

For a detailed analysis of the rest of the commodities futures markets with explicit charts, entries, exits, stops, risk/reward ratio, potential profit, (and much more) please join us at http://www.supportandresistance.com/subscribe.html

Erich
http://www.supportandresistance.com

"You miss 100% of the shots you don't take." - Wayne Gretzky