Options Trading in Progress

The chart has two similar CCi but they both ended up in different outcome! The trend was good on Friday and then stay flat throughout the weekend. Based on the chart, there might be a possible that the market might continue to trend up further. However, we see that the bollinger band had gone slightly downward. The market for Monday did not manage to go further in the end, the bollinger band channel provide another good source of indication that the market did not build up enough strength to carry on. The AO and AC may looks good , but as long as the bollinger band channel did not break out (based on the circle) it is dangerous to trade.

One of the great evils of trading is false exactness...Trading is a fuzzy process and I mean fuzzy in the best sense of the word. That is, as in fuzzy logic, as in the willingness to accept the idea that things aren't exactly quantifiable and to forge ahead anyway" --John Bollinger Trading is not about perfection. It is about probability and progress. All charts, analyses (fundamental and technical) and trading plans are built on probabilities. Why then, do so many traders strive for perfection? Why do so many traders miss trades, waiting for exactly the right entry and then beat up on themselves when it doesn't come and the position runs away while they sit there scratching their heads and condemning themselves? Why are so many traders trying to turn a game of probability into one of 100% certainty? The answer lies in one of the cardinal sins of trading which is perfectionism. Perfectionism can be a great help to people in many professions, but can be fatal to a trader.

Euro Slips on Weaker PMI Reports The euro is trading lower at the onset of European trading following a round of weaker PMI reports. According to the earliest releases of Manufacturing and Service sector data, slower global growth and a strong currency could finally be weighing on the Eurozone recovery. The latest report on analyst and investor confidence showed increased pessimism about future conditions but more optimistic about current conditions. However judging from the PMI reports, we may finally be seeing the slowdown that analysts have feared. Although all of the PMI reports still reflect expansionary conditions in the service and manufacturing sectors, the pace of expansion has slowed. The Eurozone composite PMI index dropped from 56.2 to 53.8 in the month of August with the service sector activity index falling to 55.9 from 53.6. The expansion in the manufacturing sector also slowed by a similar degree with the index falling from 55.1 to 54.6. Manufa

**************************** Yesterday night (21st September 2010) FOMC news did a high impact on the US dollars! In fact, all the major shoot out against the US dollars which signify the weakness of this currency. USD: RECESSION ENDED IN JUNE 2009?! The U.S. dollar traded lower against all of the major currencies with the exception of the British pound ahead of Tuesday’s FOMC announcement. A number of economists expect the U.S. central bank to gear up for additional Quantitative Easing which is why the dollar has been sold pre-FOMC. Currency trends are usually determined by the direction of interest rates or monetary policy and the prospect of further stimulus has put the dollar under pressure. The only reason why sterling underperformed the dollar is because economic data from the U.K. suggests that the U.K. economy has taken a turn for the worse. The U.S. economy on the other hand is not doing much better despite the National Bureau of Economic Research’s announ

Key Factor 1. Interest Rates. We use two methods to profit from the difference in countries' interest rates: interest income capital appreciation Five Keys to Predicting Forex Market Movements To profit from the fascinating world of international trade, you must have a firm grip on the key factors that affect a currency's value. When making our trades, we analyze five key factors. In order of importance, they are: Interest Rates Economic Growth Geo-Politics Trade and Capital Flows Merger and Acquisition Activity Generating interest income. Every currency in the world comes attached with an interest rate that is set by its country’s central bank. All things being equal, you should always buy currencies from countries with high-interest rates and finance these purchases with currency from countries with low-interest rates. For example, as of the fall of 2006, interest rates in the United States stood at 5.25%, while rates i