This morning we were trading two different releases out of two
different countries. The first report was the Canadian Labor
Change report, and the second was the US Non-Farm Payrolls
report.
CAd EMPLOYMENT SCORES 29 – 62 PIPS FOR TRADERS…
On the Canadian report we were looking for 15,000 in
deviation. We actually got 50,000 in deviation, which provided
a really nice move on the USDCAD and EURCAD. Unfortunately it
was CAD positive so it didn’t help our long-term USDCAD
positions. However, traders reported great profits on this
trade and we received really good reports of execution
overall. I personally did not get in this trade as the
platform I was trading on had an increased spread that was
unreasonable. Therefore, I turned off my Auto Click feature on
the RSS. We had some problems with the video on this trade, so
we do not have a video to show. Here are a few comments from
traders that got in this trade:
“Pulled out 29 pips…thanks”
“I got in for +36 pips”
“Made 62 pips…thank you”
“Just had a great 4 sec. trade! This software is great!”
“In at 9448, out at 9394 – made $22k in 7 seconds”
WILD RIDE WITH NFP…
The second trade we were watching was the US Non-Farm
Payrolls. We were looking for around 50,000 in deviation. We
saw an extremely strange reaction to this report. We watched
the markets not do a whole lot really. We had 81,000 in
deviation, which from a historical standpoint has always
provided a 60 to 100 pip move on just about any one of the
majors that are against the USD. Today we really had a major
whipsaw, which is unusual however we still had some profits
reported. For those that got executed as much as 40 pips in
some cases were reported; however, there were some that found
themselves taking a loss.
I personally got in on the GBPUSD but was stopped out with two
pips of profit. I also traded the USDCAD on this one and ended
up with a terrible fill on 66 standard lots. I have seen around
10 pips after holding for some time, but the market currently
can not come off of these lows. To see the video of this
trade, click on the link below:
The USD is at a major point of decision at this time. Stops
are being hunted and the sharks are out, so it’s an extremely
volatile market. If this is in fact a capitulation move they
are typically pretty messy. Currency pairs aren’t reacting the
way we would expect them and many models are breaking down.
Now more than ever proper leverage is key with any trading
system. Recently we’ve seen commodity-based pairs like the
NZDUSD and the AUDUSD run down, which typically would support
our USDCAD move up; however, correlations that have
historically been apparent are now not so apparent.
NEXT WEEK’S LOTN TRADE OPPORTUNITIES
We will have four LOTN news events next week. They are as
follows:
UK Industrial Production
Release date: 11/05/2007 04:30:00 AM EDT
UK Trade Balance
Release date: 11/09/2007 04:30:00 AM EDT
US Trade Balance
Release date: 11/09/2007 08:30:00 AM EDT
Canada Merchandise Trade Balance
Release date: 11/09/2007 08:30:00 AM EDT
There is also one Australian event that you might want to watch
next week.
Australia Labor Force Employment
Release date: Nov 7, 2007 7:30:00 PM EDT
I hope everyone enjoys their weekend and we will see you back
in the Live Trade Room next week, hopefully for a nice
profitable week.
