MESSAGE FROM JACKO 438

It is 1.00am NY time Monday August 31 and the market is at 1.4285

My Short trade from 1.4365 is playing itself out nicely. As you will recall, I kept my position open over the weekend, which is very unusual for me, but it is working out nicely. The London market is closed today and I am hoping that we will hit our initial target of 1.4250 in the thin European trading. I am looking at an exit below 1.4250 and then wait for another bounce. Then we will SELL it again.
(As an aside, the Fund easily exceeded 2000 pips profit for the year resulting in better than 40% return using a very conservative 2% capital risk on any one trade...our little baby has packed on some serious weight in the last 12 months..LOL. Now that we are through the worst of the Great Financial Crisis, which was a Trend Trade's nightmare, the next 12 months should be back to my previous rates of return).

I have my charts open to 300 periods of the 4H time frame.
The Resistance line. By linking up the highest points on the 4H chart from 1.4446 (Aug 5) , and 1.4406 (Aug 27) we can see that the Resistance line is currently at around 1.4380.
The Support line By linking up the lowest points on the 4H chart from 1.3832 (July 8) and and 1.4048 (Aug 17) we can see that the Support line is currently at 1.4150.
The 50% Fib line The nearest 50% fib is from 1.4048 (August 17) and 1.4406 (August 27) and is at 1.4225

From the above, we can see that the initial target on the downside is the 50% Fib at around 1.4225 and the longer term target is the Support line at around 1.4150. But if it bounces UP from the 50% fib, then we know the target is the Resistance line at around 1.4380. (NOTE The Support and Resistance line numbers will change marginally over time due to the slopes of the lines)

Edit 3.00am NY time Market is at 1.4267 The market may wander due to lack of direction from London but I am prepared to let this trade play itself a little longer. I am keeen to see if they intend breaking the 50% Fib and take it lower in the next 12 hours

Edit 8.00am NY time Market is at 1.4278 My Short trade from 1.4365 is still playing itself out. The market is looking to go down and I think that it may be trying to head for the Support line

Edit 12.10pm NY time Market is at 1.4353 I have a friend visiting me and we decided to have a drink on the balcony overlooking HK. During that time (just 15 minutes) the market moved some 50 pips (from 1.4290 to 1.4346). Ouch!. ... Anyway, the damage has been done and now I am still letting this trade play itself out now