Wednesday, August 09, 2006

ERICH'S TRADE UPDATE FOR Wednesday August 9th

ERICH'S TRADE UPDATE FOR Wednesday August 9th

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1: CURRENCIES

September Australian Dollar ADU6
The Aussie did dip lower today, so I'll bring the buy order in a little tighter. This does add risk to the trade since we're planning on entering before we clear the resistance around 7660 - 7670, which could bounce the market lower.

We're nearing the trendline support however, and are currently hitting support at 7600, so if it's going to go, it's gotta go soon.

*BUY September Australian Dollar at 7647
*Exit Stop: 7603
*Approximate Risk: $440 per contract
*Profit Target: 7797
*Potential Profit: $1500 per contract
*RRR: 3:1
*Degree of Risk: HIGH

September British Pound BPU6
Caught a break in the Pound as the market held the 190.50 support and traded higher today. This means that you should leave stops below the 190.50 line for tomorrow, but the outlook is better.

September Canadian Dollar CDU6
We got the bounce we were looking for, but truth be told I'm still a little reluctant to buy given the weak trend. I'll continue to watch tomorrow.

September EuroFX ECU6
The EC tried to push higher today, but without much to show for it. Stops should at least be at breakeven and you could consider putting them below today's low as well. Of course this is if you're trying to ride the market further. If you just want to protect accumulated profit jam them under the close.

September Japanese Yen JYU6
I was expecting more of a pullback in the Yen and the dipping RSI says that we might get it yet. Standing aside for Wednesday.

September Mexican Peso MPU6
Whew! That was close! Almost got nabbed by the Peso today as the market looked to see how low it could go! The falling RSI still has me concerned, but the high closing price is encouraging. If it's too much for you bring the stops to breakeven otherwise leave them below the low.

September Swiss Franc SFU6
The Swiss Franc is just barely bearish. I hope this changes soon. It might be what the other markets are waiting for.

September US Dollar Index DXU6
RSI higher, rates lower. Not a good combo. I'd expect RSI to win the toss so I'm holding off right now.

ERICH'S TRADE UPDATE for Tuesday August 8th

ERICH'S TRADE UPDATE
1: CURRENCIES FOR TUESDAY 8-8-06

September Australian Dollar ADU6
The Aussie fell off slightly today. If we get more of the same tomorrow I'll bring the entry down as well, but right now I'll hold off buying until we're above resistance.

*BUY September Australian Dollar at 7677
*Exit Stop: 7639
*Approximate Risk: $380 per contract
*Profit Target: 7793
*Potential Profit: $1160 per contract
*RRR: 3:1
*Degree of Risk: Moderate to HIGH

September British Pound BPU6
The BP stalled today so we can probably expect something lower tomorrow. Decision time as far as the stops go: either leave them below 189 if you're trying to ride the trend, or bring them below today's low AND put another buy order above the high in case we get stopped out.

September Canadian Dollar CDU6
The 8960 high today is past the 8950 line we were watching, but it might have been momentum that carried the market through here. We should know tomorrow.

September EuroFX ECU6
Ugly day in the EC. The plan for the stops reads exactly the same as for the British Pound.

September Japanese Yen JYU6
It looks like the Yen is going to head lower tomorrow, and if RSI is any indication, possibly for the short term as well, at least until we get another testpoint that is.

September Mexican Peso MPU6
I don't like the fact that the Peso stalled so close to the 92000 line, this could spell trouble for our trade tomorrow. While the best stop is still the original, you could put them below today's low to cover the trade on the first sign of reversal.

September Swiss Franc SFU6
The Swiss Franc had a bearish looking day today. I'm holding off here tomorrow, but something lower looks likely.

September US Dollar Index DXU6
RSI is hooking higher which would hint of higher rates to come. If the DX does head higher we'll be on hold until the next testpoint.

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Tom Loge' Live at the Amphitheatre!

Here's the deal ...

On Saturday, August 26 beginnig at 9:00 am I will be spending about 5-6 hours
in a one man show for the Denver Trading Group. It is open to the public(non
DTG members) I understand the reservations are getting up there, I guess they
have moved it from the regular conference room to the amphitheater.

I'm extending an invitation to all subscribers and friends of
supportandresistance.com to attend. Below is the url for their website and the
contact info for Ron Rossway who runs the group so effectively. Make your
reservationa as soon as possible if you'd like to attend.

http://www.denvertradinggroup.com/Pages/Schedule.html

Ron Rossway
[email protected]
(303) 750-5176

I will be staying at the Marriott Tech Center, site of the seminar. I will be
arriving in Denver at 4:30 pm on Friday. If anyone is interested I will host a
little informal get together on Friday evening. If you plan to attend and
would like to partake in some pre seminar fellowship (that means we drink a
little wine or soda, share some laughs and tell lies to each other)please
email me by Monday, August 21 so I can make the arrangements.

Obviously, I'd love to see any of you who can make it and have a little moral
support as I face down the non-believers on Saturday. We'll have some fun, for
sure.