The London Open

[rockdrive]

Originally Posted by FX Pimp

Crude long of $136.50 anyone ??

After a big fall of 600 pips, can this baby recover even 10% ??
A highly risky proposition but with my little EURUSD making a few pips there might be a little room for risking a few with the potential for a slight retracement of 100 pips.

Tread carefully though. The bull run of this beast could be over, but a good one for the demo account !

Oh Le Pimp,

You are just tickling me with that cheeky long on crude. I tried that earlier today and got royally spanked. Quite enjoyed the experience . If its all the same to you, can you let me off this one.

I think I'd prefer to put a sharp pencil up my nose rather than play with the black stuff. Where's hungry horse when you have a beast to tame.

Tom Sharpe Rockie

[FX Pimp]

Morning all.

Yes I do Believe you did get slapped in the face by the black stuff dd you not.
As I was typing the post the price went from $137 to $136.50 in a matter of seconds. Like you say, a real beast. Ou e le horse de hunger ??

Good morning everybody else.

Gold and Crude having a bad day at the races yesterday. Gold not so much but stll making lower lows, and still 250 pips.
Crude on the other hand fell almost 700 giving some much needed weight to the U.S Dollar.
Where wll ths take us? Well Gold back at $1000 and Crude at $150 could be off the menu. For the time-being anyway.

I wll be taking it pretty easy today as we never quite know how much the Commodties wll retrace before potentially plunging again.
I'm not overly keen on tradng aganst the 4hr trend but we'll have a look at the shorter tmeframes shortly.

The currencies aren't looking overly attractive. Both Cable and Euro have nothing but resistance overhead, whilst the Yens have nothing but support beneath. There are no huger gaps to exploit so let's have a peep on the shorter timeframe.
Well there's a different picture. Already Cable & Euro finding some support along with Gold, which is already up $6 from the low of yesterday.
How far can they retrace? Well, Gold may find some problems at $926, Euro possibly may run into one at 1.5750 or before and Cable at 1.9760 or lower.
I would not be getting excited with the prospect of going long on either of these two just yet. I like to see a bit of daylight up ahead so quite happy to wait for a clearer direction. even with a 5m chart, playing in between moving averages againt the longer trend can be suicidal.
As for the Yens, my USDJPY looks appealling to the downside IF it can clear 107.00 AND Gold continues to find support. There is a gap between the 4hr 20 & 50, not a huge one, but a gap all the same.
Nothing doing on the EURJPY and is set-up in Long mode, so definately staying away from that if USDJPY is looking offerred.

As mentioned last night, something that falls 600 pips must have a little retracemement and I Like the look of the Crude. Its almost exactly where is was at the $136.50 level only now has the protection of the 5m and 15m 20&50 as well. There 100 pips to the 1st target 60m 20, then clear road to $139.00 so a 250 pip possible.
Be careful if you play this against the 60m trend. It could hit the 60m 20 at
$137.50 and fall again.

I'll leave the indices to the Monkey. If crude does pullback 200-300 pips that doesn't leave a lot of room to the upside for the Dow.

Have a great day guys. More later.

[Bloom]

Correlation seems to be broken at the minute. Gold drifting lower but EURUSD drifts up and USDJPY drifts up too. Strange times.

Trade what you see.....or turn it all off and do something interesting.

[rockdrive]

Originally Posted by Bloom

Correlation seems to be broken at the minute. Gold drifting lower but EURUSD drifts up and USDJPY drifts up too. Strange times.

Trade what you see.....or turn it all off and do something interesting.

Hi Bloom,

Pretty messy day - I left early this morning to see a man about a dog.....and it seems I did not miss much. Unless you had the early moves at 5am ish not a lot happening. Does seem to have been a nice move of Gold and Cable this afternoon, but I missed them too.

Not to worry - lets be patient and play what we see on the charts. It worked for us yesterday on the Gold trade and it will continue to work. Looking forward to tomorrows London Open. This hiatus cannot last forever of the currencies and sooner or later we shall have some funky trends to play.

Me thinks with so much moisture outside it is time for an early lubricant. Don't seem to be anything else to do! Have one on me.

Umbrella Rockie
p.s I have just traded DJI - I watched Crude breaking up and went short at 11354, 10cci on 5 min poked its nose up, closed at 11331 for 24 pips. I should have closed it at 11300, but thought it was a retracement before going south again. Unfortunately Crude decided to stop playing. Lubrication definitely worked.
p.p.s Well looky here the DJI decided to go south afterall and ended around 11150. For those that took the trade and stayed with it well done.

[Hemal]

Hello everyone,

Apologies for not posting this morning, I had some problems with my internet, seams that it is one hurdle or another in our business. Mind you, had I posted anything it would have been very mixed as I was on the bench for the majority of the morning, as was the rest of the team.

However, we had a nice little play on the Dow late this evening, which is always nice.

Ok, so what's happening out there??

Starting with gold, as I like to do, which is holding support of its daily 20 MA, the 21 CCI holding positive and given the fundamentals, I like this to the upside. As for an entry, the clear break of 930, with a retracement back to that level, holding support of the 200 (1hr chart), would, in my opinion be a good buy level.

So if does happen, what impact will that have on our FX pairs?

Well the daily chart on EURUSD looks very similar to that of gold. CCI 21 positive, holding daily 50 and resistance at the 1.96 level. As for a position, I am looking for a break of 1.5760 then a retracement as a 123 play on to the 15 800 MA then a long position with a target of 1.5900.

As for cable, which is boxed in on the daily chart, if the other two mentioned come into play I would not be interested in taking a long position until price breaks and finds support of the daily 200 MA, with so many moving MAs all over the place it's not one that I'm excited about at the moment.

Well off into town tonight, so no more pipage talk for me, unless off course I meet Mr Pimps Orange lady, in which case I will have to have a word with her to get heads up on her plans. Ok, so unlikely but one can hope.

Regards
Hemal

[FX Pimp]

Morning all,

Firstly, Big congratulations to Hemal for the result. All over now, Sir. You can relax with the 'orange' lady at will.
Secondly, well done for those guys that jumped into the Dow trade with me last night.
For the readers of this post I must apologise for not getting the chart up but it happened so fast it was hard.
I didn't manage that many pips out of it anyway, what with having to go for dinner etc.

Bloom, just wanted to say a quick hello to you. The correlation thing is a guideline more than anything, but as Rockdrive points out, one should trade what one sees. For me, like you, I am put off when the correlation thing isn't right. Could have picked up 200+ on the DJI last night but got 30 odd as Crude was falling as well so didn't 'think' it would continue. So it's not only you. We all do it.

For the other guys who were asking what we trade in the 'forbidden' place.
It's the majors on the currency side. EURUSD GBPUSD USDCHF USDJPY. We also look at EURJPY. On the commodities we look at Gold & Crude to get an indication of Dollar strength or weakness. The we look at the 3 main indices. New York's Dow Jones, London's FTSE and Franfurt's XetraDax.
Very ncely structured. Easy to pick up 50 pips a day combining these few charts with the strategy. That's 1000 pips or doubling your bank each month.
Rockie will tell you. He's been with us for a little over a month and is already upto 300 for the week I think he said. Great effort, great trading, "hats orf" as they say at Royal Ascot.

Aaaaaaaaanyway...............

Gold and Crude. Longer term 240/60 says Gold has fould some support and Crude has not. Fallng all it's 200 pip gain from the morning whch was a nice trade for anyone able to trade Crude at that hour.
There is some resistance at $930 and wth Crude behaving like a big bear it's difficult to see a major re-test of last week's highs without crude following suit.
I know a lot of analysts are looking at $1800 Gold in the next few years.
Maybe this may be the severing of the link between the Orange and the Black. I still like to trade them or see them in the right direction for the time being, until the evidence becomes more clear.
For the Crude; Nothing major yesterday but today might be interesting with a possible fall to $131 if the daily 20 at $138 proves to much of a nut to crack.

Currencies........

Euro and Cable still below the 60m 200sma so not interested in either of those to the upside prior to a break.
More potential on the downside on the Swissie to 1.0240, so a 50pip potential but the 4hr 20 IS supporting price at the moment so look for that break first.
USDJPY....ermmmmm, no thanks. EURJPY looking mixed on the longer term picture too.

Swiftly moving on to the fun part, the short-term opportiunities section.

EURUSD looks quite intereting if she breaks down through 1.5720. Cable looking quite sheepish too right now with the Swiss and the JPY looking like they have found a bit of support. Very bizzarre.

As far as possible trades I am tempted to ignore the 5m charts for the minute and say that the 2 Yen pairs we cover look interesting shorting propositions on the 15m IF they start to break down again. 5m looking good to the upside though
Other than those two, Gold really could go either way, Cable looks boring ad Swissie is the same unless it breaks the 4hr 20 with some venom.
if Gold falls off I'll be looking for EURO weakness to the figure.
Wait for a direction from Gold then fill your boots !!

As we speak Gold & Crrude arre breaking down. Dollar strength prevails for the morning session

Have a great morning.

[Hemal]

Goof Morning everyone,

A little delecate this morning!

Gold looks very bid on the daily chart but think we need to see a slight pullback on the shorter term charts before a move up if there will be any volume in it.
This should give us some direction for the EURUSD. As I write, cable seams to be starting a move south, so will all three follow? ... Direction from gold is key.

Hemal

[rockdrive]

Hi Le Pimp,
Thanks for the mention. I am indeed making good progress. For clarity, cos I'm like that, 300 pips in a week is my next target. I achieved 200 a couple of weeks ago, had a mare last week and so far this week I am at 154. Keeping loose and nimble, ducking and diving......ready for the London Open, although have crawled out of bed this morning for the early moves don't see anything that I like, although sterling is looking fairly week.

Learning to keep my pips in the tin, and take trades which look right. Consistency coming, but oh so slowly......but its a massive step in the right direction.

Humble Rockie

p.s. HEMAL I AM SHOUTING - HOWS YOUR HEAD; WELL DONE AND OH IS THAT ORANGE ON YOUR COLLAR!

[rollingstone]

Hey Rockie Rockdrive

You are the Gold (Orange) star boy huh. Who is Le Pet de Pimp now? Well, hold onto your hat, I am back! Yep, back in the forbidden place next week and raring to get pipping. Got some catching up to do though, you guys are doing so well!

Rock on

F

[rockdrive]

Originally Posted by rollingstone

Hey Rockie Rockdrive

You are the Gold (Orange) star boy huh. Who is Le Pet de Pimp now? Well, hold onto your hat, I am back! Yep, back in the forbidden place next week and raring to get pipping. Got some catching up to do though, you guys are doing so well!

Rock on

F

Fantastic News - There are plenty of pips to go around........I'm working hard on the charts and grovelling around Le Pimps feet looking for titbits! He's making me work hard though.......It will be good to have your cheeky tail stinging us all with your charm.....

Have a good one and we are counting down until your return

Slush Rockie