MESSAGE FROM JACKO 426

It is 1.00am NY time Thursday August 13 and the market is at 1.4219

Well, we got lucky again yesterday. We scored another 82 pip profit to add to the bank account. The decision to close the trade prior to the FOMC was the right decision because it dropped down. However the market bounced straight back up so staying in would have been a correct decision too.

I am tempted to get back into a long position because I think that the market may still have an attempt at reaching the 1.4300 mark. It is not an AA+ trade, but I will be watching the London open for the potential for another trade. As I said early in the week, in the short term I can see the market moving back up to that 1.4338 area. But in the longer term, after it hits that Resistance line at 1.4338, I think this market is heading down.

Edit 3.25am NY time The market is at 1.4250. The market has jumped up on German and French GDP economic data. The long trade is now a very marginal trade as it is close to the Resistance. I am now becoming more interested in looking for a more favoured Short position based on it bouncing down from the Resistance at 1.4338 and continue the downward trend

Edit 7.40am NY time The market is at 1.4268 I am stepping out to a brokers presentation but I have placed my Limit Order to SELL on Stop at 1.4350. I am not sure if it will get that high this morning (US time) but if it does I am a SELLER at 1.4350 (which is just above the Resistance line).

Edit 12.15pm NY time Market is at 1.4288. I have returned to find that the market has not gone up far enough to trigger my order. It has risen to a high of only 1.4326. My order will stay in place for a little longer

Emails

Email 1
I do have a question regarding the FOMC statement. After the FOMC statement, the market came down about 100 pips, then it moved back up to where it was. The question I am having is what made the market to come down nearly 100 pips. A lot of that movement is simply the really big brokers trading against their clients....The market had moved up in the preceding hours so the brokers know that the buyers would have tightened their stop losses (so there are a lot of Stop Loss/SELL orders). So the big brokers start selling hard on the announcement , triggering the Stop Losses /SELLS and that drives the market lower triggering more Stop Losses/SELLS . When the Stop Losses have all been triggered, the brokers start buying all their initial SELLS back, forcing the price up. It was nothing to do with market sentiment. It was quickly whipping a market down using a news event. Thats why I have always said that "trading the news" is like being a fish swimming in shark infested waters. (See Post number #7 in my thread at FF )