RISK ON MODE starts. usd, jpy weakest. xau gains strength
This is why I never trade USDJPY, look at every pair - AUDJPY, CADJPY, CHFJPY, EURJPY, GBPJPY, NZDJPY - they have all made good gains for the week, starting to trend even.
Except USDJPY has gone down - why? Simple, it usually follows USD, and in this case, USD was even weaker than JPY.
I find this pair great for trading breakouts, you just have to watch for them.
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I’m watching it alright, not saying it can’t happen, but as you can see by the graph I posted and Dennis daily spreadsheet, it’s trading Weak vs Weak.
The purpose of this thread is to find the strongest and the weakest, giving the best opportunity with better chance of trend continuation with successful trading outcome. Let’s see how the battle plays out next week.
Totally based on Moving Averages, which is all the Dennis calculation is, check this out
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That is one tight market, and in early Monday trading the Yen has already dropped to the #8 spot, that should be no surprise to anyone as the trend for the Yen was down all week long
Interesting how we had a strong Yen and strong Stock market, the two normally do not go together, also note this is the 5 day in a row with a different Top Trade, this market is very much in transition
Tip; I never have more than two open trades running at the same time, it is a good rule to keep you from chasing markets as we have now
Top Trade AUDCAD* made a small gain today, see what happens when our top trade does not change every day
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Top Trade AUDCAD* is up over 100 pips, lets see if this is the beginning of a long winning streak
So just how bad are our Top Trades really doing, here are the last 4 trade signals from my Strong Weak rankings and where they stand as of about 9:45 am this morning
AUDCAD Up 127 pips
USDCAD down 109
NZDCAD down 29
AUDUSD up 69
Had you taken all 4 trades you would be up 58 pips
Not bad in a tough none trending market
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Don’t get too excited, the second half of the day was very different from the first half, so which direction will the market take tomorrow, Still a coin toss
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Note; I will be traveling this weekend, I think I will have internet Saturday and if so I will post my final numbers for the week, If I don’t have internet than you might not hear from me in till late Sunday night,
Everyone have a great weekend
I have internet
Looking at our current top trade AUDJPY* this was a top trade back in late September and was a failed trade from day one but if you held it through that 250 pip drawdown you would have finished the week down just 50 pips and near breakeven on one point on Thursday.
What will the new week bring us, the pattern has been to retrace the previous week, out side of that this market has no real direction as if waits Nov 3rd
Lots of green to start the week, with weakness in USD and Yen, futures for gold, silver and US stocks all point to a higher open
I am not a day trader but one method I have played around with is playing the strongest pair from the overnight session with the expectations for the trend to continue into the NY session, so just for fun lets go long GBPUSD at the 5 am est opening price of 1.2996 and see how it plays out, it is up a few pips as I post
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The only play here is shorting the AUD
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How did that go? I tried a similar strategy that looked promising for about a week, but it then spent a month flopping all over the place in a ranging market.