It looked as though our levels last night were right on, that is until 9:00 and the release of the GDP report. Cable spiked up 91 pips in the next hour, which is exactly why we tell our traders to get out of trades 30 minutes before news and not to get back in until 30 minutes after the news.
The GDP is significant in that it is the broadest measure of economic activity and the primary gauge of an economy's health, but without a major revision to the GDP (it was exactly where it had been predicted 1.7%) It usually does not warrant a significant move.
That is until today, which is why we tell our traders to GET OUT OF THE WAY! Our first resistance level was good for not just one entry but for good on two separate occasions during the night.
On both occasions our first target of 1.7380 would have closed the trade for a 40-pip profit. Had you closed the second trade in which we were looking towards the 1.7320 level as a potential target, around 8:00 you could easily have it under 1.7380 for another 40 pips. Enough about last night, where we are tonight and what levels are we looking towards.
First we would like to decide if the up swing will continue or not, and looking at the 1 hour chart we do not believe it will.
We just had a steep angle cross of the MACD to the sell side of the signal line, and the 15 minute MACD continue to be strong on the sell side.
The slow stochastic on the 1 hour chart had a steep angle cross several hour ago and both line are steeply heading down.
We feel the resistance should hold below 1.7480 with a strong region of resistance that starts as low s 1.7468 and goes to about 1.7510.
Now you must use your experience and your education to pick the most advantageous entry and stop loss levels.
If you do not feel your trading is at a high enough level, you should look into getting a better educational foundation to make your trades from.
With the proper education there is no reason you could not be making the kinds of trades we are making, and discussing in our newsletter.
One more thing I would like to point out to our readers, we have had some moderate success in the last month, in the area of 500+ pips depending o your personal trading style.
Please take some time to review what other did as far as results last month, I know for a fact that one managed fund emailed me yesterday with their year to date results in Pips, which was about 250.
Not bad until you look back and see that the year to date on 3/20/06 was a little over 1000 pips and over 1200 the first week in March. So if you were a client of theirs, in the last couple of weeks they would have blown up your account to about 1/5 of its March 1st value.
This kind of makes what we were able to do look pretty good. Get the education you need, learn to be an independent trader and control your own future.