Newsletter 19/11/2007

ASIAN SESSION

A) CALENDAR

-GMT 05:00 USA Fed’s Stern Speaks in Singapore on Credit Markets

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4750 111.75 2.0665
R2 1.4730 111.60 2.0605
R1 1.4695 111.35 2.0580
S1 1.4640 110.70 2.0500
S2 1.4605 110.30 2.0475
S3 1.4585 110.05 2.0450

C) WATCH
-Interest Rates

D) TRADING TIPS
CANDLESTICKS CONTINUATION PATTERNS
Rising and Falling Three methods. The first day of the Rising Three methods pattern is a long white day which fully supports the uptrending market. However, over the course of the next three trading periods, small body days occur which, as a group, trend downward. They all remain within the range of the first day’s long white body and at least two of these three small-bodied days have black bodies. This period of time when the market appears to have gone nowhere is
considered by the Japanese as a “period of rest”. On the fifth day of this pattern, another long white day develops which closes at a new high. Prices have finally broken out of the short trading range and the uptrend will continue. A five day pattern such as the Rising Three Methods requires a lot of detail in its definition. The above scenario is the perfect example of the Rising Three Methods.

EUROPEAN SESSION

A) CALENDAR

-GMT 09:15 EU ECB’s Tumpel-Gugerell Speaks at Sepa Summit in Frankfurt

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4750 111.35 2.0650
R2 1.4730 111.05 2.0605
R1 1.4695 110.70 2.0580
S1 1.4640 110.30 2.0500
S2 1.4615 110.05 2.0475
S3 1.4600 109.75 2.0450

C) WATCH
-Interest Rates

D) TRADING TIPS
CANDLESTICKS CONTINUATION PATTERNS
Rising and Falling Three methods. The first day of the Rising Three methods pattern is a long white day which fully supports the uptrending market. However, over the course of the next three trading periods, small body days occur which, as a group, trend downward. They all remain within the range of the first day’s long white body and at least two of these three small-bodied days have black bodies. This period of time when the market appears to have gone nowhere is
considered by the Japanese as a “period of rest”. On the fifth day of this pattern, another long white day develops which closes at a new high. Prices have finally broken out of the short trading range and the uptrend will continue. A five day pattern such as the Rising Three Methods requires a lot of detail in its definition. The above scenario is the perfect example of the Rising Three Methods.

US SESSION

A) CALENDAR

-GMT 13:30 EU Bundesbank’s Zeitler Speaks at Event in Frankfurt

-GMT 18:00 USA NAHB Housing Market Index (Nov) EST 17 PREVIOUS 18
Definition
The Housing Market Index is data from a survey of home builders reflecting single-family home sales on the present, the next six months and traffic from prospective buyers. This composite index indicates housing market trends. This provides a gauge of not only the demand for housing, but consumer sentiment as well. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and investments. Each time the construction of a new home begins, it translates to more construction jobs, and income which will be
pumped back into the economy. Once a home is sold, it generates revenues for the home builder and the realtor. It brings a myriad of consumption opportunities for the buyer. Refrigerators, washers, dryers and furniture are just a few items new home buyers might purchase. The economic “ripple effect” can be substantial especially when you think a hundred thousand new households around the country are doing this every month.

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4730 111.35 2.0605
R2 1.4695 111.05 2.0580
R1 1.4670 110.70 2.0555
S1 1.4615 110.25 2.0450
S2 1.4600 110.05 2.0410
S3 1.4580 109.75 2.0350

C) WATCH
-Interest Rates
-GMT 18:00 USA NAHB Housing Market Index

D) TRADING TIPS
CANDLESTICKS CONTINUATION PATTERNS
Rising and Falling Three methods. The first day of the Rising Three methods pattern is a long white day which fully supports the uptrending market. However, over the course of the next three trading periods, small body days occur which, as a group, trend downward. They all remain within the range of the first day’s long white body and at least two of these three small-bodied days have black bodies. This period of time when the market appears to have gone nowhere is
considered by the Japanese as a “period of rest”. On the fifth day of this pattern, another long white day develops which closes at a new high. Prices have finally broken out of the short trading range and the uptrend will continue. A five day pattern such as the Rising Three Methods requires a lot of detail in its definition. The above scenario is the perfect example of the Rising Three Methods.