Free Forex Guide

Market Direction for 20 - 23 of Dec. 2011

noreply@blogger.com (Business Matrx) — Mon, 19 Dec 2011 22:24:00 +0000

USDollar Index Chart 5hours

Although the USDollar index is swayed downwards based on the technical presentation, it's very obvious it maintained an upward momentum but limited at 80.96.
On the summary, we still remain slightly bearish for USDollar index chart for the next couple of days: we should be seeing the first lower low from this point at 80.50 and gradually deep into 80.40.

However; what determines the potency of this movement is the ability of the of the EU policy makers instituting a vaible instrument to avert the looming debt issue that is about disintegrating the EU into seperate countries.
It is important to note that in recent times, the EU government have not been able to do something tangible in order to regain the investors confedience - we will treat this shortly after the next chart ...

USDollar Index Chart 1hours

Like I said, we will remain slightly bearish for the USDollar index in the next coming days of the week - Please be careful as you sell USD against other currency pairs:

EUR/USD : Daily Pivots: (S1) 1.2993; (P) 1.3039 (R1) 1.3082; & More
EUR/USD continues to consolidate above 1.2946 temporary low for the moment and intraday bias remains neutral. Further sideway trading could be seen but upside of recovery should be limited by 1.3212 support turned resistance and bring fall resumption. Below 1.2946 will target 1.2873 support first. Whole decline from 1.4939 should head to 100% projection of 1.4939 to 1.3145 from 1.4246 at 1.2452 and below.

GBP/USD : Daily Pivots: (S1) 1.5498; (P) 1.5528; (R1) 1.5572 & More
GBP/USD continues to consolidate above 1.5409 temporary and intraday bias remains neutral. We'll stay cautiously bearish as long as 1.5779 cluster resistance holds (50% retracement of 1.6165 to 1..5409 at 1.5787) and expect another decline. Below 1.5409 will target a test on 1.5271 next. Break there will confirm resumption of whole decline from 1.6460 too and should target 1.5 psychological level and below.

USD/CHF

Intraday bias in USD/CHF remains mildly on the downside for the moment and retreat from 0.9547 could extend lower. But still, break of 0.9065 support is needed to confirm short term topping. Otherwise, recent rally from 0.8567 and that from 0.7065 is still in progress. Above 0.9430 minor resistance will flip bias back to the upside first. Break of 0.9547 will confirm rise resumption towards 0.9916 cluster resistance next.

USD/JPY

Despite earlier spike, USD/JPY failed to sustain gain and settled back into familiar range. Intraday bias remains neutral and more consolidations could still be seen. But rise from 76.57 is expected to resume sooner or later as long as 77.49 minor support holds. Above 78..28 will target 100% projection of 76.57 to 78.28 from 77.13 at 78.84 and above. Nonetheless, note that such rebound is viewed as the second leg of the consolidation pattern from 79.52. Hence, we'd expect strong resistance below 79.52 to bring another near term fall to continue the consolidation, as the third leg. Meanwhile below 77.49 minor support will flip bias back to the downside for 77.13. Break will suggest that recovery from 76.57 is finished and target this support and below.

In summary, I will advise traders to be cautious during these period or permanently stay out of the market till next year; this is a very crucial part in the market. As there won't be much liquidity for investors to play around with, due to the spirit of festivity around the corner.
Market is preparing itself for 2012 as 2011 has come to an end. If you happen to have a live trade still going on into 2012, you are posing a big risk for your portfolio --- Please be sure to stay out of trade during the holiday and close every live trade. IT IS VERY RISKY ... Don't be tempted to do so! Please be smarter these closing period of the market.

Have successful trading experience.

Market Direction for 19 - 22nd of Dec 2011

noreply@blogger.com (Business Matrx) — Sun, 18 Dec 2011 23:37:00 +0000

We should be expecting a new low for the USDollar index for 80.40 - 80.20 or lesser within the trading period of 19 - 22. It is also imperative we trade with caution due to emerging economic down turn from the Euro region - untill this is solved by policy makers, market will remain southwards for EURO.

EUR/USD

At 1.3040; we should buy EUR/USD and take profit at !.3140 ....
The buy direction will be contained at 1.3210 - 1.3212; below this level we should be expecting a sell direction for 1.2950

GBP/USD

For GBP/USD, Buy at 1.5530 and take profit at 1.5630 ....
This direction will be contained at 1.5680 --- However we are expecting a strong bullish movement for this currency pair within the week to 1.5770 level .... below this point we should be expectecting a sell movement for 1.5410.
Be also informed that British economy is on the fragile lane due Euro debt issue; as 50% of the British exported goods depend solely on the EU.

USD/CHF

USD/CHF's rally extended further to as high as 0.9547 last week before forming a temporary top there. Initial bias is mildly on the downside for deeper retreat. But break of 0.9065 support is needed to confirm short term topping. Otherwise, recent rally from 0.8567 and that from 0.7065 is still in progress. Above 0.9430 will flip bias back to the upside first. Break of 0.9547 will confirm rise resumption towards 0.9916 cluster resistance next.

USD/JPY

USD/JPY failed to break 78.28 resistance last week and formed a temporary top at 78.15 and retreated. Initial bias is neutral this week for some sideway trading. Another rise is mildly in favor as long as 77.49 minor support holds. Above 78.15/28 resistance zone should extend the rebound from 76.57 to 100% projection of 76.57 to 78.28 from 77.13 at 78.84 and above.
Nonetheless, note that such rebound is viewed as the second leg of the consolidation pattern from 79.52. Hence, we'd expect strong resistance below 79.52 to bring another near term fall to continue the consolidation, as the third leg. Meanwhile below 77.49 minor support will flip bias back to the downside for 77.13. Break will suggest that recovery from 76.57 is finished and target this support and below.

Have a successful trading week and trade with caution as Christmas is this week!
Remain blessed!

Patience is a major winning strategy in FX trading.

noreply@blogger.com (Business Matrx) — Mon, 05 Dec 2011 01:26:00 +0000

Trading the FX market for most market trader is like a young indian tiger that goes out for hunting first time. If the cob is too fast, the cob will scare its prey away and lose its meal for that day if not the next 2 - 3days. In the process of doing this, the cob will spend a lot of energy during the chase; and for the cob to get its next meal, the cob need to gain back its energy lost from the previous chase. This will be too bad for the cob if it is residing in sub-saharan Africa where the heat is over 60 degree celcius.

Patience is a major tool in FX trading; you need to study the market to determine your entry and exit point. This is very important part of FX trading. When I started FX trading, one of the challenges I had to face was entring the market too fast or too late. It really affected my earning potentials in FX trading.

Profits that was surposed to be attained in 2-4days took months to be achieved. Some of you my dear readers might say that I did not lose at the end of the day; but the truth is that it altered the time I was surposed to make my profits.This could frustrating and discouraging in FX trading.

Most marketers in FX are really discouraged when this happens; individually we have our targets in FX in every trade decision we make; but when this is not forth coming, we tend to be easily discouraged --- I fill your emotions because I have been their 10years back.

Fortunately for us, we can stop this from occouring again; how? The major ways you can stop entering the market too early or late is by:

Plan every trade you want to enter before hand. In every business you venture into, planning is the key to great profits. And make sure you have no trade going on; this will help to put you nerves to order and give you clear mind to plan your trade ahead.
Do extensive study about the currency pair(s) you want trade as you plan; remember that planning is a function of the infor you've gathered. For a successfully executed plan, you must not only study the market in general, you must give a great attension to researches and findings for the currency pair(s) you intend trading. Most cases, I suggest you give at least 12-16hours for an extensive reseach and planning before trading.
Build an excessive confedience about your findings then trade - I hear a lot of young traders saying that they failed as a result of over-confedience; and I imagine or ask myself over-confedience in what? Friends is not wrong having confedience in your business, but you must discover the source of that confedience and make sure the sequences are placed correctly.
Also, very importantly, watch your lot size for the trade you are about to place. In most cases what saved me from the loss of entering the trade to early or late is the favorable lot size I use in my trade. Sincerely speaking, when you place a trade and the cost of that trade is more than 0.5% of your entire investment, friends watch that trade - you are indeed risking your capital. Make sure your lot size is absolutely convinient for you! This will help you to cob all the negative emotions that may arise during trade. Forget whatever hype you are hearing these days about FX trading; the truth is this: it is better to trade with micro account of 0.01 and remain in the market than to trade 0.10 and stay out of the market.

With this I have come to the end of my tutorials for today, have a successful trading experience ahead. Next on my tutorial, I will teach you what lot size that is associated with different start up capital.

Rmain at the top.

Live Market forecast 11/28/2011 - 11/30/2011 Part 3

noreply@blogger.com (Business Matrx) — Tue, 29 Nov 2011 12:56:00 +0000

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Live Market forecast 11/28/2011 - 11/30/2011 Part 2

noreply@blogger.com (Business Matrx) — Mon, 28 Nov 2011 22:59:00 +0000

This is the video alert for market direction for Asian trade session, European session and US market session.

Enjoy watching this video and post your view about it; thanks ==>>>>

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Live Market forecast 11/28/2011 - 11/30/2011 Part !

noreply@blogger.com (Business Matrx) — Mon, 28 Nov 2011 22:04:00 +0000

This is the video alert for market direction for Asian trade session, European session and US market session.

Enjoy watching this video and post your view about it; thanks ==>>>>

Video Forecast I

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I will keep you posted during the European session.

Market Direction for EUR/USD & GBP/USD

noreply@blogger.com (Business Matrx) — Sat, 26 Nov 2011 21:00:00 +0000

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I will advise you to stand aside and watch the market establish its trend; this when a lot of investors lose their money ===>>>> Please trade wisely and very smart. :)

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Risk is Growing That a Country Will Quit Euro: Miles

noreply@blogger.com (Business Matrx) — Thu, 24 Nov 2011 10:50:00 +0000

By Fergal O’Brien - Nov 24, 2011 9:52 AM GMT

Bank of England policy maker David Miles said there’s a risk a country may leave the 17-nation euro area and that the threat from the region’s crisis has increased uncertainty about the outlook for the U.K. economy.

“I don’t think any of us can feel confident one way or another about whether all the countries that are currently in the euro zone will still be in it,” Miles said in an interview on ITV broadcast late yesterday.

In the U.K., “the return to more normal rates of growth is something that is going to be a gradual process over the course of the next two years,” Miles said. “There’s plenty of risks and that might turn out to be too optimistic, that might turn out to be too pessimistic.”

The Bank of England, which restarted bond purchases in October to aid the recovery, cut its 2012 growth forecast this month by more than half. While gross domestic product rose 0.5 percent in the third quarter, the central bank said yesterday that underlying growth was probably weaker than that.

The pound was little changed against the dollar, trading at $1.5554 at 9:50 a.m. in London. The euro was at $1.3397, up 0.4 percent on the day.

European Turmoil

There are signs the turmoil is starting to affect Germany, Europe’s largest economy, after bids at a sale of securities repayable in January 2022 fell 35 percent short of the 6 billion euros ($8 billion) on offer. German 10-year bonds extended a decline today, pushing the yield on the securities as much as 10 basis points higher to 2.25 percent.

Miles said that “it’s pretty difficult to know where we’ll be even at the end of this week, let alone where we’ll be in three to six months time.”

“I wouldn’t be surprised if someone leaves the euro,” Trevor Greetham, head of asset allocation at Fidelity Worldwide Investment, told Bloomberg Television in an interview from London today. “You’d need to step in with unlimited force.”

The central bank’s nine-member Monetary Policy Committee maintained the target for its bond-purchase program at 275 billion pounds ($427 billion) this month, saying in the minutes of its decision that there was “little merit in fine tuning” while the current four-month plan was continuing.

‘Main Emphasis’

Nevertheless, risks from the euro-area debt crisis “had increased” and some MPC members said an increase in so-called quantitative easing “might well become warranted in due course.”

Miles also said in the interview he expects U.K. inflation to ease “significantly” in 2012 from its current 5 percent level. While price growth is “uncomfortably above” the bank’s 2 percent target, it would be a “big mistake’ to increase interest rates in response, he said.

Bank of England Chief Economist Spencer Dale echoed those remarks yesterday, saying inflation will slow and the economy ‘‘needs more support.’’

‘‘That’s the main emphasis and onus on policy at the moment,’’ Dale said.

Market direction for 24/11/2011

noreply@blogger.com (Business Matrx) — Wed, 23 Nov 2011 17:48:00 +0000

Hello fellow traders;
This info is to guide you for tomorrow's trade, wandering how I got this info? That shouldn't be your problem. Between monday and tuesday, something like this happened and I thought it wise to get you informed on time.

At 79.34 - 79.63, the US Dollar index should experience a mild pull back; although this pull back may not have any visual effect on market direction; however, it pay to let you know.

We will experience a slight sell off on US dollar index from 79.63 to 78.00: this is a repition of what happened on the 12 of september market when USD resume its big sell off ====>>>> In FX, history are bound to repeat itself.

Only after this pull back we would see US Dollar index testing 80 - 81.00 if it is able to push upwards. If this happens, EUR/USD should be testing 1.3000 or lesser at 1.2980 ***** It is important to note that at 1.3125, EUR/USD can spike up with 200pips.
I urge traders to be very careful when EUR/USD is at 1.3140 >>>> if possible stand aside and watch the market conform its trend ====>>> This is my strong advise.

Tomorrow, we should be experiencing a slight friction on USD movement .... Stay informed.

Today trade result for my company and client was 600pips

Stay blessed and informed.

Dollar and Risk Trends Tied to Holiday Liquidity Conditions

noreply@blogger.com (Business Matrx) — Sat, 19 Nov 2011 21:14:00 +0000

By John Kicklighter, Currency Strategist

Dollar and Risk Trends Tied to Holiday Liquidity Conditions
Euro Crisis Boost Risk of Coordinated Rescue or Structural Change
British Pound Traders Weigh EU Crisis Spread, BoE Stimulus and Austerity
Canadian Dollar Ignores Ease in Inflation, Oil and Equities Correlations Glare
Japanese Yen Tests Policy Makers’ Resolve, Markets Clearly Aiming for Gains
New Zealand Dollar on the Verge of a Multi-Year Trend Change as Rates Questioned
Gold Closes out its Biggest Weekly Decline Since September’s Collapse

Dollar and Risk Trends Tied to Holiday Liquidity Conditions

This past week has been an encouraging one for the US dollar. And, considering the currency’s lack of appealing attributes; this performance speaks to ill-health for the broader financial markets. Falling back on its extreme risk aversion / liquidity appeal, the 20-day correlation between the S&P 500 (our favored barometer for risk) and greenback currently resides at negative 70 percent - having hovered as high as 98 percent though the beginning of the month. The currency’s play on financial instability seems an ideal role to play given the backdrop for growth, credit and safety of fund issues; but there will definitely be complications in capitalizing on this position heading into next week. Though many of the concerns that have overwhelmed the headlines these past months will continue to dissolve sentiment, it will be very difficult to drive enough of the market to shift positioning given the expected lull in speculative liquidity with the US Thanksgiving holiday.

Though the US represents only a portion of the total global capital behind currency and broader financial markets; it is a significant enough percentage to dampen the ability to generated consistent trends. This leaves us with a truncated time table with which to potentially leverage a critical breakdown or reversal from prominent technical boundaries across so many different currency pairs and asset benchmarks. The optimal scenario for generating a meaningful drive next week would be to leverage a strong move Monday. This would allow for at least a few days of follow through should fundamentals unfold in such a way as to support the prevailing drive. For direction, the greatest potential rests with an unwinding of risky positioning. That fits the spread of a growing credit crisis, the deepening European financial troubles and general slow-down in economic activity. However, history tells us something different. Over the past seven years, the period before the Thanksgiving holiday is broadly mixed; and the general trend developments into a bullish advance through the year end from there (even back in 2008).

The holiday trading conditions will certainly be a complicating factor for trading the dollar next week; but in the meantime, we should keep a close eye on the backdrop for financial strains. We know that the European market’s are particularly stressed; but issues are no longer isolated to that particular area. Money market funds have significantly reduced exposure to EU banks, though the ill-effects have nevertheless found their way into funding costs in the US system. These are the underlying issues that we should consider to be critical rather than the ineffective event risk on the docket (including second readings of 3Q GDP, the Fed minutes, durable goods and personal spending among other highlights).

Related:Discuss the Dollar in the DailyFX Forum, John’s Video:Risk and Liquidity Clash at Critical Moment for S&P 500, EURUSD

Euro Crisis Boost Risk of Coordinated Rescue or Structural Change

The European Union, ECB and IMF’s effort to stem the Euro-area’s crisis was deemed ineffectual long ago. However, there have been plenty of opportunities along the way for officials to buy time a little more time. That is exactly what was accomplished on the Euro’s behalf this past week. However, the fight now comes more out of desperation than proactive effort. A good example of this was the ECB’s consistent plunge into the government bond market, purchasing Italian and Spanish debt in an effort to prevent a bailout that would inevitably swamp the already overwhelmed bailout programs. It is possible that a critical collapse can be pushed back a little further; but there will inevitably be a point of no return. The ECB may be putting a limit on the initiatives as a German newspaper reports the group may have agreed to a 20 billion euro purchase of debt a week. Another consideration: what happens when the replacement governments themselves are replaced.

British Pound Traders Weigh EU Crisis Spread, BoE Stimulus and Austerity

During the favorable years, the sterling drew significant benefit through its economic connections to the European Union; but that link works just as surely against the currency during bad periods as it does for it during the good. In the week ahead, the progress of the region’s slow motion crash will spill over to the pound. Along the way, we will need to also consider the balance between a building government-austerity led recession and BoE-led stimulus. There are a few economic catalysts along the way; but we won’t expect much to tap the underlying fears.

Canadian Dollar Ignores Ease in Inflation, Oil and Equities Correlations Glare

Inflation data through the end of this past week did little to change the bearing of the Canadian currency. The Bank of Canada is already on a bearish path through the foreseeable future; so a downshift in core inflation (from a near three-year high to 2.1 percent clip) does little to alter the picture. What does present immediate pressure is the slide in risk trends and oil: the highest correlating speculative capital flows for the unit.

Japanese Yen Tests Policy Makers’ Resolve, Markets Clearly Aiming for Gains

Friday’s quick dip for USDJPY showed the market’s persistent belief that the yen should appreciate in a free market due to its real rate of return and safe haven status. However, the sharp move lower wouldn’t hold for very long as the speculative ranks are far too aware of the BoJ and MoF’s willingness to act on desperation. We should keep an eye out for intervention at market open; but be aware of bigger efforts.

New Zealand Dollar on the Verge of a Multi-Year Trend Change as Rates Questioned

What a precarious way to end the week off – and given the liquidity issues in the second week – what a disappointing shortfall for bearish progress. The curbed participation levels in the FX market next week will naturally curb broader trends at a time when NZDUSD is on the verge of turning a much larger, multi-year bull trend. A break is highly probable; but follow through will be difficult to rouse.

Gold Closes out its Biggest Weekly Decline Since September’s Collapse

Gold closed out its worst weekly performance since the metal was in virtual free-fall back in September. Those that are still hung up on the simple concept of the commodity playing a straightforward safe haven asset are confused by this positive correlation to the S&P 500. However, the experienced recognize the issues this highlights for the demand for liquidity – where gold struggles to hold its own.

German Govt Prepares For Greece To Exit Euro Zone

noreply@blogger.com (Business Matrx) — Mon, 14 Nov 2011 10:21:00 +0000

Michael CEO, Favoured Capital Investment Group Ltd, London

Germany's government is preparing for a Greek exit from the euro zone in case the new Greek government doesn't want to implement the latest austerity program, according to a report for the latest edition of Spiegel magazine pre-released Saturday, citing sources close to the finance ministry.

Germany's finance ministry couldn't be reached for comment on the report Saturday.
The article said experts from the finance ministry are considering several scenarios. The basis scenario assumes "things won't get as bad [as expected]."

According to the article, government experts view "periphery states" such as Spain and Italy as currently experiencing problems borrowing money; "however, unlike Greece, they aren't broke."

The next scenario foresees a Greek exit causing initial turbulence but in the long term it could potentially lead to a stronger euro zone with the weakest member gone, according to Spiegel.

The government's worst-case scenario, Spiegel said, would involve Spain's and Italy's borrowing costs rising dramatically, forcing the European Financial Stability Facility, or EFSF, to provide fresh capital.

To cover such a scenario, the government experts said the EFSF's financing volume would need to be boosted as quickly as possible to more than EUR1.0 trillion, according to Spiegel.

The government is also discussing a "worst-worst-case scenario" which, although considered unlikely, would involve a dramatic devaluation of the new Greek currency against the euro and "disproportionate" negative effects such as high Greek sovereign debt despite write-offs, a further drop in Greece's credit rating, and an economic crisis lasting for decades that could infect other countries, the article said.

EU warns of 'deep, prolonged recession'

noreply@blogger.com (Business Matrx) — Sat, 12 Nov 2011 21:36:00 +0000

By Matthew Dalton

BRUSSELS -- The European Union Thursday slashed its growth forecast for the 27-nation bloc in the coming year and said it can't exclude the possibility of a deep, prolonged recession.

The European Commission, the EU's executive arm, said in its semiannual forecast the economy is struggling with weak confidence, financial turmoil, government austerity packages and a slowdown in Europe's main trading partners.

It said the EU's gross domestic product in 2012, adjusted for inflation, would grow just 0.6%--sharply down from its forecast only six months ago of 1.8%.

Since then, the euro-zone sovereign debt crisis has intensified, undermining investment and consumer confidence, the commission said. Government austerity packages have suppressed growth across the bloc. Domestic demand, which economists had hoped would be able to drive the recovery, has failed to pick up the slack.

"The probability of a more protracted period of stagnation is high," said Marco Buti, head of the EU's economics division. "And, given the unusually high uncertainty around key policy decisions, a deep and prolonged recession complemented by continued market turmoil cannot be excluded."

DailyFX Tips and Forex Trading Strategies

noreply@blogger.com (Business Matrx) — Thu, 10 Nov 2011 18:13:00 +0000

Having a solid trading strategy is essential for trading the major currencies, and can help individual investors take advantage of profitable opportunities. Identifying and following the major trend helps to lower the risk for loss, which usually facilitates individual traders from ending up on the wrong side of the market. However, scalp or intraday trading involves a high risk for loss, but identifying short-term support and resistance levels could help to lead to a profitable trade. At the same time, applying technical indicators will also assist an investor to get in a trade at the best time, and exit the position with the highest potential profit.

Top Ten Basic Technical Indicators

noreply@blogger.com (Business Matrx) — Thu, 10 Nov 2011 18:09:00 +0000

Thomas Long takes a look at ten of the most popular technical indicators available to traders in today's forex markets. Thomas explains how these indicators are calculated and discusses some of their strengths and weaknesses. This presentation is meant for traders who wish to learn more about these tools to get a better understanding of how they can be used when trading.

Forex Chart Reading 101

noreply@blogger.com (Business Matrx) — Thu, 10 Nov 2011 18:06:00 +0000

Thomas Long takes a look at a simple, yet proven, approach to using charts. Thomas first looks at how using charts can identify which currency pair may offer a solid trading opportunity and then looks at a couple of ways to take advantage of that opportunity. This presentation is designed for new and experienced forex traders.

Jobless Claims Fall to Lowest in Seven Months

noreply@blogger.com (Business Matrx) — Thu, 10 Nov 2011 17:51:00 +0000

The number of Americans filing applications for unemployment benefits fell to the lowest level in seven months, a sign the recovery may be encouraging companies to limit cuts in headcount.

Jobless claims fell by 10,000 to 390,000 in the week ended Nov. 5, Labor Department figures showed today in Washington. The median forecast of economists in a Bloomberg News survey called for 400,000 new claims. The number of people on unemployment benefit rolls decreased, while those getting extended payments rose.

Waning dismissals pave the way for bigger gains in payrolls and in consumer spending, which accounts for about 70 percent of the economy. At the same time, a pickup in hiring is needed to cut the unemployment rate, which Federal Reserve officials predict will not drop below 8 percent until 2013.

“Today’s report is a positive sign for the state of the labor market in the fourth quarter,” said John Herrmann, a senior fixed-income strategist at State Street Global Markets LLC in Boston. “The economy remains very exposed to potential turbulence in the euro zone, but at least the economy is growing at a decent clip. Job retention is pretty high. Businesses have been very carefully managing their headcount.”

Futures on the Standard & Poor’s 500 Index expiring in December rose 1.4 percent to 1,243.10 at 8:37 a.m. in New York, after the report was issued. The yield on the 10-year Treasury note rose to 2.05 percent from 1.96 percent late yesterday.

Jobless Applications

Jobless benefits applications were projected to increase from 397,000 initially reported for the prior week, according to the median forecast of 46 economists in a Bloomberg survey. Estimates ranged from 390,000 to 420,000. The Labor Department revised the prior week’s figure to 400,000.

Today’s data showed the four-week moving average, a less volatile measure than the weekly figures, fell to 400,000 last week, the lowest since April, from 405,250 the previous week.

The number of people continuing to receive jobless benefits fell by 92,000 in the week ended Oct. 29 to 3.62 million. They were forecast at 3.68 million.

The continuing claims figure does not include the number of Americans receiving extended benefits under federal programs.

Those who’ve used up their traditional benefits and are now collecting emergency and extended payments increased by about 43,500 to 3.53 million in the week ended Oct. 22.

More Workers

Some businesses see the need for more workers. Macy’s Inc. (M), the second-biggest U.S. department-store chain, is stepping up hiring of mostly part-time employees by 4 percent for the November-December holiday shopping season.

Companies pulling back include Whirlpool Corp. (WHR), the world’s largest maker of household appliances, which plans to cut more than 5,000 jobs.

The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 2.9 percent.

Twenty-seven states and territories reported a decline in claims, while 26 reported an increase. These data are reported with a one-week lag.

Initial jobless claims reflect weekly firings and tend to fall as job growth -- measured by the monthly non-farm payrolls report -- accelerates.

Payrolls grew by 80,000 workers in October, and gains in the prior two months were revised up by 102,000, Labor Department figures showed last week. The unemployment rate fell to 9 percent from 9.1 percent.

Separate Figures

Separate figures released this week showed job openings in September increased by 225,000 to 3.35 million, the most since August 2008, a month before the collapse of Lehman Brothers Holdings Inc. intensified the financial crisis. Hiring advanced while firings also climbed.

Fed policy makers this month projected economic growth of 2.5 percent to 2.9 percent for next year, with unemployment in the 8.5 percent to 8.7 percent range. They forecast joblessness in 2013 will be 7.8 percent to 8.2 percent.

“While we still expect that economic activity and labor market conditions will improve gradually over time, the pace of progress is likely to be frustratingly slow,” Fed Chairman Ben S. Bernanke said in a Nov. 2 press conference in Washington.

Greece names former banker Lucas Papademos as new prime minister

noreply@blogger.com (Business Matrx) — Thu, 10 Nov 2011 17:30:00 +0000

ATHENS — Senior banker Lucas Papademos was named Thursday as the prime minister of the new Greek interim government, charged with keeping the debt-strapped country out of bankruptcy and firmly in the 17-nation eurozone.

After four days of intense political negotiations, the 64-year-old former vice president of the European Central Bank was chosen to lead a coalition backed by both the governing Socialists and opposition conservatives that will operate until early elections in February.

"I am convinced that the country's participation in the eurozone is a guarantee for monetary stability," Papademos said. "We must all be optimistic about the final result, as long as we are united."

Papademos added that no specific date had been set for a snap election next year, and an agreement to hold the ballot on Feb. 19 was only a reference date.

He replaces outgoing Socialist Prime Minister George Papandreou midway through his four-year term.

A statement from the president's office said Papademos would form an interim government that will secure and implement the decisions of a €130 billion ($177 billion) European debt deal agreed upon during a summit in Brussels on Oct. 27. That deal is the country's second massive bailout, after a first €110 billion ($150 billion) rescue package was deemed not enough to keep Greece from bankruptcy. The new cabinet will be sworn in Friday afternoon.

The latest Greek crisis erupted last week, when Papandreou said he would put the hard-fought European debt deal, that involves private bondholders canceling 50 percent of their Greek debt holdings, to a referendum. The announcement horrified European leaders, sparked a rebellion in his own party and caused an uproar in financial markets.

Papandreou withdrew the referendum plan and agreed to step aside for a unity government.

Papademos, a former ECB vice president who is not a member of any party, has been operating lately as an adviser to the prime minister.

Markets skittish Shares on the Athens Stock Exchange were up 2.1 percent at 783.28 on the prospect of a power deal. That came despite more bad news for Greece's recession-hit economy: unemployment surged to 18.4 percent in August, up from 12.2 for that month in 2010. Other eurozone nations have refused to give Greece its latest installment of bailout cash — €8 billion ($11 billion) — until the country approves the second bailout deal, which took European leaders months to hash out.

The markets want clarity soon so the new government can secure bailout cash to avoid an imminent bankruptcy that could push Europe into a new recession and world financial markets into turmoil.

Greece's deliberations over the past few days have taken a backseat to developments in much-bigger Italy, where Italian Premier Silvio Berlusconi has announced his intention to resign soon after a new package of economic reforms are passed.

But concerns over a prolonged political gridlock in the eurozone's third-largest economy — Italy is considered too big for Europe to bail out — have roiled the markets. Italy's borrowing costs shot through the roof Wednesday, tempered only a bit by a hasty promise from Italy's president that Berlusconi would be out of office after reforms are passed — likely by Saturday.

Respected Italian economist Mario Monti was also named a senator for life, which puts him in line to run the next government. Monti, 68, now heads Milan's Bocconi University but made his reputation as EU competition commissioner, when he blocked General Electric's takeover of Honeywell.

Story: Soaring borrowing costs push Italy to the edge

Europe has already bailed out Greece, Portugal and Ireland — but together they make up only about 6 percent of the eurozone's economic output, in contrast to Italy's 17 percent.

The new Greek debt deal would also see private bondholders cancel 50 percent of their Greek debt holdings — and many analysts fear that Italian bond holders could one day also be required to forgive some of Italy's massive €1.9 trillion ($2.6 trillion) debt.

New eurozone recession? Earlier, the head of the IMF pressed for a quick resolution in both Greece and Italy.
"I believe that many lenders, many investors actually expect something to happen to give political clarity," IMF chief Christine Lagarde said during a visit to Beijing. "It's much needed in Greece, it's much needed in Italy. There is clearly some rumors, trepidation, expectations. No one really understands who is going to come out as the leader, and I think that confusion is completely conducive to volatility."

The European Union, meanwhile warned that the 17-country eurozone could slip back into "a deep and prolonged" recession next year as the debt crisis spins out of control.

The EU's economic watchdog, the European Commission, predicted Thursday that the eurozone will grow only a paltry 0.5 percent in 2012 — way down from its earlier forecast of 1.8 percent growth. EU unemployment will be stuck at 9.5 percent for the foreseeable future.

The report also predicted growth in Italy would slow to 0.1 percent next year, down from 1.3 percent forecast this spring.

It also warned that Italy is unlikely to balance its budget by 2013 if recently promised austerity and reform measures aren't implemented. If those measures don't happen, Italy will still run a deficit of 1.2 percent, with debt close to 119 percent of economic output.

Top 10 Mistakes Traders Make

noreply@blogger.com (Business Matrx) — Thu, 10 Nov 2011 17:04:00 +0000

Achieving success in futures trading requires avoiding numerous pitfalls as much, or more, than it does seeking out and executing winning trades. In fact, most professional traders will tell you that it's not any specific trading methodologies that make traders successful, but instead it's the overall rules to which those traders strictly adhere that keep them "in the game" long enough to achieve success.

Following are 10 of the more prevalent mistakes I believe traders make in futures trading. This list is in no particular order of importance.

1. Failure to have a trading plan in place before a trade is executed. A trader with no specific plan of action in place upon entry into a futures trade does not know, among other things, when or where he or she will exit the trade, or about how much money may be made or lost. Traders with no pre-determined trading plan are flying by the seat of their pants, and that's usually a recipe for a "crash and burn."

2. Inadequate trading assets or improper money management. It does not take a fortune to trade futures markets with success. Traders with less than $5,000 in their trading accounts can and do trade futures successfully. And, traders with $50,000 or more in their trading accounts can and do lose it all in a heartbeat. Part of trading success boils down to proper money management and not gunning for those highly risky "home-run" type trades that involve too much trading capital at one time.

3. Expectations that are too high, too soon. Beginning futures traders that expect to quit their "day job" and make a good living trading futures in their first few years of trading are usually disappointed. You don't become a successful doctor or lawyer or business owner in the first couple years of the practice. It takes hard work and perseverance to achieve success in any field of endeavor--and trading futures is no different. Futures trading is not the easy, "get-rich-quick" scheme that a few unsavory characters make it out to be.

4. Failure to use protective stops. Using protective buy stops or sell stops upon entering a trade provide a trader with a good idea of about how much money he or she is risking on that particular trade, should it turn out to be a loser. Protective stops are a good money-management tool, but are not perfect. There are no perfect money-management tools in futures trading.

5. Lack of "patience" and "discipline." While these two virtues are over-worked and very often mentioned when determining what unsuccessful traders lack, not many will argue with their merits. Indeed. Don't trade just for the sake of trading or just because you haven't traded for a while. Let those very good trading "set-ups" come to you, and then act upon them in a prudent way. The market will do what the market wants to do--and nobody can force the market's hand.

6. Trading against the trend--or trying to pick tops and bottoms in markets. It's human nature to want to buy low and sell high (or sell high and buy low for short-side traders). Unfortunately, that's not at all a proven means of making profits in futures trading. Top pickers and bottom-pickers usually are trading against the trend, which is a major mistake.

7. Letting losing positions ride too long. Most successful traders will not sit on a losing position very long at all. They'll set a tight protective stop, and if it's hit they'll take their losses (usually minimal) and then move on to the next potential trading set up. Traders who sit on a losing trade, "hoping" that the market will soon turn around in their favor, are usually doomed.

8. "Over-trading." Trading too many markets at one time is a mistake--especially if you are racking up losses. If trading losses are piling up, it's time to cut back on trading, even though there is the temptation to make more trades to recover the recently lost trading assets. It takes keen focus and concentration to be a successful futures trader. Having "too many irons in the fire" at one time is a mistake.

9. Failure to accept complete responsibility for your own actions. When you have a losing trade or are in a losing streak, don't blame your broker or someone else. You are the one who is responsible for your own success or failure in trading. You make the trading decisions. If you feel you are not in firm control of your own trading, then why do you feel that way? You should make immediate changes that put you in firm control of your own trading destiny.

10. Not getting a bigger-picture perspective on a market. One can look at a daily bar chart and get a shorter-term perspective on a market trend. But a look at the longer-term weekly or monthly chart for that same market can reveal a completely different perspective. It is prudent to examine longer-term charts, for that bigger-picture perspective, when contemplating a trade.

Jim Wyckoff

Learning to Trade the Forex Market

noreply@blogger.com (Business Matrx) — Thu, 10 Nov 2011 16:54:00 +0000

Getting started

The beauty of forex is you can get started right away without any money and without having any idea what you are doing. To do this you open what is called a demo forex account. In your demo account you trade with fake money and you have fun learning how to trade for real. Your goal is to build a sustainable track record of successfully trading with fake money. Once you have done this you will be ready to try trading with real money.

The transition from fake money to real money can be tricky. Sort of like learning to fly in a flight simulator and then flying a real airplane for the first time. Each time you enter the flight simulator your skills will be improving and your confidence increasing, until you get to the point you feel you are ready for the real thing. In theory, if you master the flight simulator, the real airplane will not be a problem.

In reality, as you're walking toward that real airplane for the first time, your heart will be pumping and you will be scared. Likewise when you are about to pull the trigger on your first real money trade your heart will be pumping and you will be scared.

Flying a plane for real and trading forex for real are similar in many ways:

If you are reckless flying the plane you will get yourself killed. If you are reckless trading forex you will lose all your money
Flying entails taking off, obeying the rules of safe flying, and landing safely. Forex trading entails entering a trade, controlling your risk, and exiting safely.
When flying an airplane your success requires you get all three (takeoff, safety, and landing) right. In forex trading your success requires that you get all three (entry, risk, and exit) right
The best pilots always put safety first. The best forex traders always put safety first.

Flying a plane and trading forex for real are different in one key way

To become a pilot there is government mandated formal education and professional training requirements; as a result of this formal education and professional training, few pilots crash and burn. To become a real money forex trader there is no government mandated formal education and no professional training requirements; as a result, almost all forex traders crash and burn

Formal education and professional training

Whether you want to be a jet fighter pilot or a weekend recreational pilot of a two-seater, you need formal education and professional training to insure your safety and success. If you want to become a full-time forex trader, a part-time forex trader, or just dabble from time to time you need at least some education and training to insure your safety and success; especially if you're serious about making money from forex trading.

Education choices - getting started

I suggest you start withBabyPips.com; it's described as “a free, funny, and easy-to-understand guide for teaching beginners how to trade the forex market”. Here you will learn about the forex market, forex trading, technical analysis, and fundamental analysis. There is also practical advice on choosing a forex broker and how to go about opening your broker account and getting started with your forex trading. If you prefer reading a book, “Forex for Dummies” is a good place to start. Brian Dolan, one of the authors, is a brilliant guy and he has done an excellent job in laying out the forex basics in easy to understand language. I wrote an article “Forty five ways not to lose money trading forex”, which can easily be located with a Google search; many traders have told me it helped them a lot. You may want to read that one; knowing the common mistakes new forex traders make may be helpful.

As you study the basics, you will likely find the technical tools that you think will suit you. It's a good idea to do further research on those technical tools; three excellent free sources of further information on technicals (and fundamentals) are Investopedia.com, fxstreet.com, and forexfactory.com

Your broker will supply free charting software for you. Personally, I like netdania.com charts; they are very user friendly and there is a free demo version, which I have been happily using for the past 5 years.

Technical tools I use

I love trading. I was a professional forex bank trader for 20 years. I retired in 2004 and have been trading my own account since then. I like to trade everything from one minute charts to daily charts. The technical tools I like best are:

Simple moving averages
Range breakouts
Momentum breakouts
Swings
Fibonacci retracements
Gartley patterns
Candlestick patterns
Bar reversals
Correlations
Daily high and low

There is plenty of free information about all of these technical tool available on the internet

Fundamental tools I use

Market view - what currencies are traders focusing on and why
Central bank speak - what are the key moneymen in each country saying and why
Interest rates - how much interest you get for holding onto a currency matters
Economic news - the reality of employment, retail sales, and housing matters

A good free website to track all the upcoming important scheduled economic news is forexfactory.com. Kathy Lien is excellent at the fundamentals. Her daily comments can be found at fx360.com.

Where do you begin?

Of course, if you are a new forex trader it takes time to figure out your niche and if you have a job you will need to choose a particular focus of your forex trading. I still think it helps to at least get some exposure to all the tools, both technical and fundamental, that work best in forex trading, and then choose the ones you like. There is plenty of free information on the internet to choose from.

Consider formal education and training

Once you've done your independent study you may choose to try trading forex on your own. If you have the available resources, it may be a good idea to get specialized training / mentoring; there are some good ones out there.

The argument that if a trader was any good he would not be teaching is not without merit. However, there is this to consider. A good trader manages risk effectively. Trading has its ups and downs but getting paid to teach trading is a winning trade every time. Why not do both and improve the slope and the volatility of the earnings curve.
That is not to say there are not a lot of disreputable forex educators out there. Do your due diligence and you can find a good one.

Jimmy Young

eurusdtrader.com

Forex Tutorial

noreply@blogger.com (Business Matrx) — Thu, 10 Nov 2011 16:48:00 +0000

Hello my good friends;
Welcome to my free tips and tutorials on how to trade FOREX successfully.
Today, we will start from the basics for those of us who are new.

FOREX is all about trading foreign currencies Online; as simple as it is, a lot of people are not succeeding in the business. FOREX is among the easiest internet business or Online home business ; you can start earning good profit within a couple of days if you know what you are doing. You trade two currency pairs simultaneously with FOREX. An example is EUR/USD; in this quote, EUR is the base currency and USD is the counter currency.
When EUR is very strong from the analysis you derived from the market or news agencies, you buy the EUR and sell USD simultaneously(buy). Secondly, when the odds are against EUR, you sell EUR to buy USD(sell).

However it is very important you open a demo account to practice FOREX trading. I always tell my clients that this is the best way to learn FOREX trading: opening account for demo trading is 100% free with any broker. Suffice me to say that you at least demo trade FX for at least 8months - 1year. This is to equip you with adequate knowledge you need in FOREX market.
FOREX trading is not a business of gambling, if you come with such attitude in FX; you'll certainly not achieve anything in FX. FOREX like every other business has to do with detail planning and analysis before you can place any trade.

Furthermore, you must know that FX market is very risky. If you don't plan your market before placing any trade, you will loss such trade. The beauty and success in FX business lies in your ability to drop the risk involve in any trade to at least 1%. If you can achieve this, that is when the profits start coming in.
Here are some of the sites where you can learn FOREX trading in details:

While opening a demo account, you need to do this with brokers that allow you demo trade as long as you want. Some of the brokers allows a short period of demo trading like 3 - 6months; dear readers, within this short period, you cannot equip your trading arsenal with required trading skill. Most traders are lossing their money in FOREX trading because of inadequate knowledge to adapt with the changing events in the capital market on a daily bases. Below are some of the broker that allow long period of demo trading :-

P.P.S ... NEVER TRADE FX WHEN YOU HAVE NOT TRAINED YOURSELF ADEQUATELY ... FX MARKET IS CHARACTERISED WITH ENORMOUS RISK, THEREFORE I WILL URGE YOU TO DO YOUR DUE DILIGENCE BEFORE YOUGO INTO FX TRADING. ALWAYS REMEMBER TO INVEST THE MONEY YOU CAN AFFORD TO LOSS.