Forex

Spreads are good now...too bad I don't know whether to buy or sell..

t would be interesting to see what Asia does with GBPJPY. IMHO, we might see consolidation between now and Fed meeting tomorrow in 193-196 range (this will also offer short term technicals to correct to normal levels) before the next leg up or down.

I might be crazy, but I really hope the FED does nothing. I was watching Kudlow & CO, and he said the exact same thing. I actually think all the issues in the mortgage origination market would be on their way to resolution.
Seems to me spreads might narrow and the dolar would bounce. A stable currency would also attract massive amounts of dollar buying, since everything is so cheap here in the US. I don't think a stronger dollar would be bad at all for the market, rather the opposite. So I am suggesting that a stronger, stabalized currency may reflect foreigners increasingly optimistic outlook. Now that we have the bank failure....lets get this market correction higher. NO RATE CUT!!! PLEASE.

I don't think the woes are over yet and will still impact the market when news releases come out. But i agree with u

I still have a trade from earlier also at this current price. Where is your stop for this trade? I didn't close mine out as I normally would've done because the trend is still strong.

Dear Stephen and Simarik
Though it is tempting to look towards the dollar strength, let's watch out for the strength of the trend so far...I remember when EURUSD was at 1.35, many traders were opening short positions looking at option structures and all-time highs around 1.37...

Actually, a cheap dollar might rekindle real estate market as many foriegners start buying 'cheap' US real estate. Also, cheap dollar would make many american products attractive over European products for exports and naturally, the cheap dollar may also vet the appetite for US investments. Eventually, dollar would strengthen, but more based on stronger fundamentals than central bank manipulation.

Simarik
Had the original stop at 196.50, which I moved to 195.50 after a failure at 195.50 earlier today and have now moved it to 194.50 after the break of 194....

Will wait for 192.50 test...if it bounces, will close the trade at 193, if it breaks through, will move the stop to 193 with target of 189.75...let's see how it plays out...there might be a large whipsaw tomorrow around Fed decision, but that's the nature of trading...

But if your entry was 194.75, how did you originally pick 196.50 as a stop? There wasn't any real support/resistance at that time and 196.50 wasn't tested yet.
(my original stop was 198...I know it was too high, but I also knew we'd probably be ranging today and retesting the lows)
Are you by any chance going by the 4 hr candle close? you mentioned that before somewhere.
OK, I'm pooped and need a little shut eye...I'll be back if the computer beeps for me...

Rahul
I am just torked that our currency has to be treated like toilet paper!

I don't understand why Bank of Japan is standing for this. I am thinking they want to let the fever run it's course and wait for trend line support in thin conditions to sell the yen.