Thursday, July 8, 2010

7/8 Forex

In forex, Person's Proprietary Signal (pps) moved into bull phase on the U.S. dollar against the Japanese yen. The USD/JPY currency pair is trading below the midline of this month's Person's Pivots.
ppspps openupper pivotlower pivot
EUR/USD US$1.2604 US$1.2236 jul01 US$1.2510 US$1.1602
USD/JPY¥87.22 ¥87.70 jul08 ¥91.49 ¥85.29
GBP/USD US$1.5170 US$1.4943 jul01 US$1.5266 US$1.4021
EUR/JPY ¥109.87 ¥110.03 jul06 ¥112.46 ¥103.05
USD/CAD C$1.0545 C$1.0543 jul07 US$1.1024 US$1.0291

The phase switch on USD/JPY was accompanied by a sharp rise that pushed the price through the pps moving averages. Altogether, the pair so far has traversed 1.1% low to high since midnight Eastern.

The preceding bear phase lasted 15 trading days and carried the price down 4.9% from the signal open to the low point of ¥86.95 on July 1. Altogether, the short profit from the bear phase was 4.1% for the entire life of the signal.

The most recent bull phase lasted 15 days and carried prices up 1.7% throughout its lifespan.

In the near term, the yen has been trending downward since May 5, and that decline is part of a larger downtrend stretching back to 1998 (or, arguably, back to 1990).

(Parenthetically, when I first visited Japan the exchange rate was pegged at ¥360 to the dollar. Ah, the good old days.)

The euro continues to climb against the U.S. dollar. EUR/USD moved into bull phase on July 1 and is trading above the Person's upper pivot.

The U.S. dollar is falling sharply against its Canadian counterpart after moving into bear phase yesterday. The USD/CAD pair began the day below the Person's Pivots midline.

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.

No comments:

Post a Comment