Summary for the week MAY 18-22 (Week 21 2009)

Early in the week, I got a nasty loss but that one got buried with a series of long-term trades that yielded over a thousand pips total.

Story of the week is the UK downgrade and the weakness of the dollar across the board.

May Trade #10 SELL NZD/USD
- 88 pips

LT Trade BUY NZD/USD
+ 63 pips (Set 1)
0 pips (Set 2)
+ 62 pips (Set 3)
+137 pips (Set 4)

LT Trade BUY EUR/USD
+130 pips (Set 1)
+158 pips (Set 2)
+372 pips (Set 3)
+400 pips (Set 4)

TOTAL +1,234 pips

USD Dollar dropping across the board

Wow! The USD is being dropped everywhere like a hot potato. Yesterday, Standard and Poors put the UK on a credit watch. This floored the GBP. The pair did recover later in the day. However, the stigma of this event is far-reaching. With the US economy many times in worse shape than the UK, it is not far-fetched that they could be next in line for a credit watch. And with this, fearful investors dumped the dollar and headed for safer-haven medium like Gold (Gold made a 20-dollar jump overnight).

This is why my two long trades (NZD/USD and EUR/USD) have borne fruit the past couple of days.

May Long-Term Trade # 2 - EUR/USD

May 22,2009 11;30 pm

The rest of this trade is out. 2 lots came out at +372 pips and +400 pips, respectively. What a wonderful night!

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May 22,2009 7:30 am

The second half of this trade is currently doing +288 pips. Moved my stop to protect +200 pips.

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May 21,2009 10:44 am

Trade is currently at +172 pips.

Stops moved to 1.3725 to protect +97 pips.


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May 21, 2009 7:00 am

Limit 1 of this LT Trade was hit last night at +140 pips. Trade is currently doing very well with +144 pips.

Stops have been moved to 1.3678 to protect +50 pips.

Fantastic trade! I believe it will still continue higher.

Here's the reason why: Last Tuesday, Eurozone ZEW business sentiment survey came out surprising the whole currency world with a significantly-better-than-expected number. This means that large businesses in Europe expect better economic climate in the next quarters to come. With this, risk appetite will grip the market and investors will gobble up Euros over the greenback.


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May 20, 2009

I am in a long-term trade for the EUR/USD. I am following trades of my Forex mentor Mark So (Get your FOREX education at http://www.businessmaker-academy.com/)

Details of the Trade:

LONG EUR/USD @ 1.3628
STOP - 1.3260
Limit 1 - 1.3758
Limit 2 - 1.4000

Will hold on to this trade as long as I can and update regularly.

May Long-Term Trade # 1 - NZD/USD

May 22,2009 11:30 pm

Early in the day I reigned-in another batch of longs for this pair. The first half came out at +62 pips sometime this afternoon. Now, it's nearly midnight and the pair is doing +137 pips. With the weekend coming, I am taking the rest out. Another wonderful trade.

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May 22,2009 7:30 am

The second lot of this trade got stopped-out at breakeven yesterday when a retracement occurred.

Total gains for this trade is +63 pips.

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May 21, 2009 10:46 am - Switching to risk-free mode.

I manually took out my first lot at +63 pips. Moved stops to breakeven. I'm now risk-free for this trade.

It appears that risk appetite for investors is in for the NZD as number of visitors/tourists improved. Like in the Eurozone, there is general sense of optimism in New Zealand that the economy is primed for a rebound.

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May 21,2009 7:00 am

Trade is currently doing +30 pips/lot. Hanging tough!


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May 20, 2009

I am in a long-term trade for the NZD/USD. I am following trades of my Forex mentor Mark So (Get your FOREX education at http://www.businessmaker-academy.com/)

Details of the Trade:

LONG NZD/USD @ 0.6027
STOP - 0.5700
Limit 1 - 0.6130
Limit 2 - 0.6500

Will hold on to this trade as long as I can and update regularly.

May Trade # 10 - SELL NZD/USD

May 18, 2009, 6:50am (Manila)

Unfortunately, the pair went on an upward and my 2 lots were stopped-out at -88 pips total.

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It's another week in May.

My firs trade for the week:

SELL NZD/USD @ 0.5837
STOP - 0.5880
Limit 1 - 0.5817
Limit 2 - 0.5797

Reason: New Zealand's PPI q/q came out worse than expected. I expect this to bear down on the NZD and drag it down vs. the USD. Negative PPI means that manufacturers are paying less for their raw materials. When this happens, they are expected to pass this on to consumers in their final products. Lower prices will reflect lower inflation which is bad for a currency.