Tuesday, July 27, 2010

7/27 Forex

  • Euro bull signal against the U.S. dollar after brief whipsaw.(EUR/USD).
  • U.S. dollar shows bull sign against the yen, but it is cheshiring (USD/JPY).
  • Euro flashes bullishness against the euro after bearish whipsaw (EUR/JPY).
ppspps openupper pivotlower pivot
EUR/USD US$1.2997 US$1.2878 jul26 US$1.2510 US$1.1602
USD/JPY¥87.54 ¥86.87 jul27 ¥91.49 ¥85.29
GBP/USD US$1.5545 US$1.5258 jul23 US$1.5266 US$1.4021
EUR/JPY ¥113.83 ¥112.87 jul27 ¥112.46 ¥103.05
USD/CAD C$1.0310 C$1.0488 jul22 C$1.1024 C$1.0291
USD/MXN Mex$12.6281 Mex$12.8693 jul22 Mex$13.4288 Mex$12.5516

The EUR/USD bull phase follows three days on the bear side that produced a 0.1% price increase. Mainly a wash, before spreads.

The EUR/JPY whipsaw was a day longer and similarly unproductive in the bear phase: A 0.2% price increase.

The USD/JPY bull phase that appeared this morning has since disappeared, a behavior, known as cheshring, that is common to Person's Proprietary Signal. The word "cheshiring" comes from the Cheshire Cat in Alice in Wonderland, who has the habit of disappearing, leaving behind only a grin.

For the pps, cheshiring behavior today will often lead to a solid signal tomorrow. But no guarantees.

If the signal should come solidly into place today, the preceding eight days in bear phase would have produced a 1.7% decline in price and so was profitable.

The analysis uses the daily Person's Proprietary Signal, developed by John Person, and the monthly Person's Pivot, which he also developed.

These are black box signals -- the "proprietary" means that Mr. Person knows how they work under the hood, and I don't. But they have shown a fair degree of success in identifying good entry and exit points, and I find them useful.

On the glance, "pps open" means the price at the start of trading in the United States on the day the signal appeared.

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

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