Friday, August 20, 2010

8/20 Forex

  • The Empire strikes back.
  • Dollar goes to bull phase against the loonie, peso. (USD/CAD, USD/MXN).
  • Euro declines as much as 1.2% against the dollar (EUR/USD).

ppspps openupper pivotlower pivot
EUR/USD US$1.27 US$1.32 aug11 US$1.34 US$1.25
USD/JPY¥85.56 ¥85.44 aug19 ¥88.41 ¥83.96
GBP/USD US$1.55 US$1.59 aug11 US$1.60 US$1.51
EUR/JPY ¥108.49 ¥113.50 aug10 ¥115.86 ¥108.62
USD/CAD C$1.05 C$1.04 aug20 C$1.06 C$1.01
USD/MXN M$12.78 M$12.70 aug20 M$13.00 M$12.24

The dollar's strong again, weak again, strong again weak again routine shows the difficulty in analyzing the current state of the economy. GDP growth is recovery. Perhaps not everything is coming up roses, but at least the dandelions are in bloom.

But there are no jobs. States are bankrupt. Homeless men and women walk with vacant eyes through the mean streets. Adult children are rushing home to live with their parents. No wonder America is sunk in despair!

To the signals.

The USD/CAD bull phase comes after a three day bear whipsaw that produced a 0.3% decline for those traders who were extraordinarily nimble. Today's 1.2% rise intraday pushed the price above the midline.

The USD/MXN bull phase also ended a three-day bear whipsaw that produced a 0.3% price rise, meaning the bear signal failed to produce a profit. The price remains below the midline, despite a 0.7% intraday rise.

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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