ASIAN SESSION
A) CALENDAR
-28/10/2007
-GMT 23:50 JPN Retail Sales (m/m), (Sep) EST -2.0% PREVIOUS 3.9%
-GMT 23:50 JPN Retail Sales (y/y), (Sep) EST -0.5% PREVIOUS 0.5%
Definition
The retail sales report is a measure of the total receipts of retail stores from samples representing all sizes and kinds of business in retail trade throughout the nation. It is the most timely indicator of broad consumer spending patterns and is adjusted for normal seasonal variation, holidays, and trading-day differences. Retail sales include durable and nondurable merchandise sold, and services and excise taxes incidental to the sale of merchandise. Excluded are sales taxes collected directly from the customer. It also excludes spending for services, a large component of consumer expenditures. Retail sales is a the first picture of consumer spending for a given month. Retail sales are often viewed ex-autos, as auto sales can move sharply from month-to-month. Also, gas and food component changes are often a result of price changes rather than shifting consumer demand. Retail sales can be quite volatile and the advance reports are subject to large revisions.
B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4440 114.90 2.0615
R2 1.4415 114.75 2.0570
R1 1.4400 114.60 2.0550
S1 1.4365 113.90 2.0505
S2 1.4340 113.75 2.0480
S3 1.4315 113.60 2.0455
C) WATCH
-Interest Rates
- (28/10/2007) GMT 23:50 JPN Retail Sales
D) TRADING TIPS
THE ELLIOT WAVE
Being able to determine between threes and fives is obviously of tremendous importance in the application of this approach. That information tells the trader what to expect next. A completed five wave move, for example, usually means that only part of a larger has been completed and that there’s more to come. One of the most important rules to remember is that a correction can never take place in five waves. In a bull market, for example, if a five wave decline is seen, this means that it is probably only the first wave of a three wave (a-b-c) decline and there’s more to come on the downside. In a bear market, a three wave advance should be followed by resumption of the downtrend. A five wave rally would warn of a more substantial move to the upside and might possibly even be the first wave of a new bull trend.