March 7 - 12, 2010

Please use a 25 - 50 pip trailing stop to protect your profits, if you cannot monitor your trades properly.

EURJPY long at 122.00 SL 120.72 TP 123.00
EURGBP short at 0.9025 SL 0.9065 TP 08975
EURAUD short at 1.5061 SL 1.5134 TP 1.4961
USDJPY long at 90.00 SL 88.84 TP 91.00

Notes:

The EURAUD trade is at the bottom of of the curve. The Euro is weak and there are more trouble ahead for the Euro. However, there is a chance that it will spike back up, and take us out before going on with the trend. So beware of this one.

Pick one of the trades above, try not to over expose yourselves, as they are all either Euro or Yen trades. If you pick the EURJPY, then only take that ONE trade, as it covers all the other pairs.

Good luck

Many of you may not like this pair in particular, but it is the only pair that met all our criteria today.

EURJPY short at 122.50 (or higher, if possible) SL 123.34 TP 121.50 (or 100 pips from higher entry)
Use a 30 - 50 pip trailing stop, if you do not want to let the trade play out.

EURGBP short 0.9150 SL 0.9165 TP 0.9100

GBPUSD long at 1.5030 SL 1.4930 TP 1.5130
USDCAD long at 1.0238 SL 1.0200 TP 1.0338

This a a potentially excellent trade. This is one of my long term trades, so we may be in it for a few weeks or months, if I am right. The stop loss is huge, so you have two possible entry points which I will lay out below. The rational is that the Euro is in huge trouble, and all that is left to run to is the USD and the Yen. The Japanese have troubles of their own, and that leaves us with only one choice - not the best one, but at this time, it appears to be the least of all evils!!

The burden of the Financial crisis has shifted from the privately held banks to that of the public coffers, and printing money just does not work - As we can see from the likes of Greece, Spain, Italy and Portugal. Their measures to austerity are being met with stern resistance - what are the chances that the politicians will eventually succumb to their voters in order to get re-elected??

Here are the trades, a.k.a, my Smurf trades:
EURUSD short at 1.3775 SL 1.4100 TP 1.2000 (may revise later)
OR
EURUSD short at 1.4000 SL 1.4100 TP 1.2000 (may revise later)

The chances of the Euro going to 1.4000 are not very good at this time. If you look at the weekly moving averages, we see that a lot of of the short positions are exiting the market thinking that a bottom has been formed. The retail clients (you and I) will look at this and think that the Euro will rise, however, the real BIG players are still holding on their shorts from 1.5000 and have not exited as yet, which only means that they know something that will be made public knowledge at a later date. The key to this trade is that if the really BIG players start covering their short trades, we will see a huge spike up of about 500 - 1000 pips within a couple of weeks.

The overall idea is to get in early, and add positions, risking only the profit made from the first trades.

As always, there is, of course, the possibility that I am dead wrrooonnnnggggg!!!