Written by Barry Battista
Wednesday, December 22nd, 2010
As I have mentioned, the trades for this week and next are much higher risk that in non-holiday times of the year due to reduced liquidity in the market. If you have anything else to do, like maybe starting your Christmas shopping early, you should feel guilt-free by opting out of these. I will post some triggers anyway.
8:30 AM EST
CAD GDP m/m – Change in value of goods and services produced by the economy
EUR/CAD
This has moved fairly well in the past with .2 and .3, but that is not really an indication of what it will do tomorrow. And since there is a US release at the same time, we must trade the EUR/CAD which has a big spread. I would trade .3 and .4 for medium and safe on row 1. Trade 1/5 of your normal lots on the medium and 1/3 on the safe if you must do some trading. Needless to say, do not try the Straddle.
8:30 AM EST
US Durable Goods – Change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items.
USD/JPY
This is not a great trade even in good market conditions. Last month it came out at -3.3, a nice deviation, and spiked 10 pips in the wrong direction. Prior to that, it has not deviated enough to measure the spike without a micrometer. I would pass on it, but again if you must, try 5 medium and 7 safe, trading small fractions of your normal lots on each. No Straddle.
That is it for the week. There are no trades on Friday. A quick glance at next week indicates that there are no trades at all. The banks are closed around the world on Monday and many on Tuesday also. There are one or two releases that I might try in other months, but it would be senseless to try them next week. We will start up again on the first week of January. I hope you all have a great Christmas and New Year. Be safe and lets hit this thing hard after the first of the year. I hope you have enjoyed the posts, and more importantly, I hope you have been profitable.
Barry
