Dollar, Equities (stocks), and Commodities May 2008 to today August 08

Dear investors, stock traders, commodities traders, and forex (dollar) tradings, and all blog readers.

Back in May 08, Editor of this blog penned the note below. Now that we have hindsight, the vision below is a reality. The chain is breaking/changing direction exactly as forecast. Yes one can make accurate economic/market forecasts.

Your comments folks! If you know of any other person or site out there that made or came close to the accurate forecast below, let me know.

On May 07, 2008 we wrote:

"Here is what I think the message of the markets is/going to be:

1. Stock market down because of recession/earnings. Fed does not have much room to cut more.
2. Other countries will cut rates to fight spreading recession, causing interest rate differential between dollar world and non-dollar world to shrink. This is bullish for the dollar (similar to dividend increase in stocks).
3. Point 2. will lead to further strength of the dollar because of momentum in currency pairs created by dollar bulls (change of trend in favor of the dollar), and money running to safety to USA and buying of assets/bonds.
4. Points 1. to 2. will cause commodities to be less in demand, and therefore a reduction in their perceived price will follow. This will translate to weaking in futures prices, helped with a strengthning dollar. Once the down trend is established, the bears (and their aunts) will take care of the bear trend in commodities.

The first wave: dollar up, and market down. Commodities afterwards with possible sharp corrections as a beginning to disorient the bulls before the kill.

Long dollar/short foreign currencies, short US equities and international, and start shorting commodities once a top is comfirmed, etc.

"

forex trading currency trading eur usd (July 22 - 23, 2008)

forex trading currency trading eur usd (July 22 - 23, 2008)

Stock market traders and investors, currency traders, forex traders:

First we would like to say to regular readers that we have been away, and due to additional circumstances, we could not post on this blog over the last 10 days or so. We would come back to this in another post.

This post is about trading the forex. We have been sharing with those on the forex email lists some of our trades (particularly with regard to the eur/jpy pair). We have also traded EUR/USD, and we are about to close the latest trade on the EUR/USD pair which is showing some 230 pips profits.


I would also add to those who received emails about EUR/JPY over the last two weeks, that last night and today we could not send you the trades. Since the stock market finished green today and since EUR/JPY is generally positively correlated with the equity market, we took profits in the afternoon. We plan to re-enter if it goes up and fails, but we still work under the assumption that this pair is most likely at the top, and we are trading it accordingly as per the various emails you have received. Chart is attached.

Enroll to the forex email list if you would want that we communicate with you regarding the forex trades.

Happy trading