What’s Going On?

by Trader Rich

I signed up for free forex trading signals that was recommended by one of our visitors William. Here was the first email I just received from them. I'll also post William's comments afterwards with information on signing up.

Email:

Well, today's speech by Greenspan proved to be very dollar
positive! I really think that I am going to start watching and trading
speeches. I was talking to a friend of mine today, and he said that on
Real Bloomberg Channel, not the internet one, but the one that you get
on your cable TV, the speeches are LIVE. And on the internet channel,
it's about 15 seconds delayed…not sure whether it's true or not, but
we'll see. I think speeches is another pretty sure method of trading.

Okay, I told you that tomorrow, June 8th should hopefully be an
awesome trading day, with great potential. Well…here is what's
happening.

1. 6/8/06 (4:30 am New York Time). We have Industrial Production
and Manufacturing Production coming out of the UK. Both expected at
0.3%. Industrial Production is more important, though I hope to get
both numbers in the same direction in order to make a trade. If the
numbers are higher, this should have long bias on GBP/USD. If the
numbers are lower, this should have short bias on GBP/USD.

2. 6/8/06 (7:45 am New York Time). Euro Zone is announcing an
interest rate statement. It's expected that they will raise interest
from 2.50% to 2.75%. I have a clear strategy in mind for this report.
1 minute before the release, I will open two long positions of
EUR/USD. One with a 50 pips limit, and the other with 100 pips limit
(subject to the price level at that time). Then I will be listening to
the interest rate announcement. If they announce the hike, I'll keep
my positions open, which is 95% chance. If they say they are not
raising the rate, I'll close both positions IMMEDIATELY, and will
probably take 1 lot short on EUR/USD (this is a very slim chance of
happening). So if they do raise the rate, which is most likely, I will
keep my positions without any stop/losses for exactly 4.5
hours, until 12:14 pm EST. And I will close both of them, no matter
what, at that time. The reason I am going to do that, is because at
12:15 pm, Trichet will be speaking, and if his speech is negative, it
may send EUR the other way.

William says:

If you wan't to trade the news, I would be sure to sign up for Felix's alerts at http://forexbastards.com/

He
sends out a nightly report on what he will trade the next day and what
economic numbers will trigger a trade. The signals are free and a big
part of what I use with the newstrike service (again free) http://newsstrike.com/home.shtml

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