Today email is pretty long but there is a lot to cover so I will just dive in. If you don’t want a review of how I trade yesterdays call you can always scroll to the bottom to get tomorrows trade call.
OUR LAST LIVE ON THE NEWS TRADE CALL
Yesterday was pretty exciting as the GBP/USD broke 15 year highs after the release of the UK CPI. Our Plan was to go long on the GBP/USD if it deviated by .2 or more on the UK CPI Core Y/Y. This releases actually only deviated by .1 so I personally regrettably passed on this.
A large portion of the room did enter on this release using the monthly number which did deviate by .2. In addition to the M/M number deviating by .2 the Y/Y number deviated by .3 so collectively there was a lot of good news for the UK which lead to a major rally resulting in a break of a 15 year high.
I wrote an article that explains how I choose what release to use when there are multiple releases coming out at the same time as well as determining what trigger to use. It’s a great read so if you have the time you can view it at the link found below this paragraph. Unfortunately the recording for this release froze so I don’t have a video to show you. (sorry).
The US CPI further drove the GBP/USD up when it came out lower than expected by .1. Again we were looking for .2 for a safe trade so I passed. If you have been following my calls for some time you know I am a very conservative trader and many times I will pass on a trade and it will still pay out for the more aggressive traders.
Yesterday was a great example of this, both of these releases were extremely profitable for many of the members of my trade room that opted to use a lower trigger even though I passed. We had around 100 people trade the US data with a deviation of .1. The video of this trade is a little long but I wanted to include some of the analysis that goes along with my trading style and trade management.
You will see at the end of the video I give my first major target for those that entered around 2.0035 and that target was 2.0128. I was extremely happy to see the GBP/USD top out today at 2.0129 before falling almost 130 pips knowing that there were traders targeting that level. To see the video of this trade click on the following link:
OUR NEXT LIVE ON THE NEWS TRADE CALL
Tomorrow we have another great opportunity to pick up some nice profits. We have CPI Core coming out of Canada at 7am eastern and it is expected to be .2. This could give us a nice move.
A higher than expected number would signal a sell on the USD/CAD currency pair and a lower than expected number would signal a buy. I will also watch the monthly number and the Core y/y number for conflicts. This is another one that could be affected my any of the three pieces I listed.
Good luck!!!!
