Thursday, February 7, 2008

Another other shoe to drop? -- IFCN Wk 9 -Thu- Equity: $531.23

We really did get a nice move in the EUR/USD this week.  It's about time.

My money management algorithm placed a bit more size on the EUR/USD and USD/CHF than on the other pairs, so I am up fairly good going into Friday.

I will repeat the one constant among traders. You never have enough size on the winners. But I always try....

Also, there is a possibility of one or two OneNightStand orders getting executed on Friday.

A note about the action we are currently seeing in the currency markets. It is extremely likely that we have a bottom in the dollar for a while. The old "sell the news, buy the fact" brand of thinking in forex. Just about all the bad news that can be found or manuafactured has found its way to the markets. People have finally committed themselves. What other shoe is there to drop?

Also, America is incredibly inexpensive relative to most anywhere anyone wants to be, and a majority of its products and services are cheaper too. The countries that have been absorbing dollars pell-mell for years, are now sending them back to pick up bargains. Even our stock market is in a much cheaper position for them to slide money into at wholesale prices.

Don't expect much more downside on the dollar very soon. Later--- yes!

Current status on the Alpha account, nicely up this week-- $531.23.

We'll see how tomorrow shapes up.

Joel Rensink
www.infiniteyield.com

PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent.

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