Wednesday, April 16, 2008

Fed doesn't like the condition of our economy, Buy Euros! IFCN Wk 19 -Wed- Equity: $757.69

Apparently the U.S. economy is not too good right now, according to the Fed's most recent report on conditions, with conditions getting worse across the the nation.

Consumer spending is down, job numbers are declining and manufacturing is holding its own, according to the Fed's Beige Book, the compilation of gossip from its 12 regional banks.

Three said there was no apparent change. Nine of the 12 said the economy was worse in April than in March.

---A BRIGHT SPOT---

The weak dollar is itself the bonus in the report.

Foreign visitors apparently now are streaming to the United States to take advantage of the cheap prices of goods and services here relative to their own countries. Manufacturers in the USA are finding their products more competitive overseas.  

Might that mean a better economy right down the road?  Yes.

Personally, I think the governors were depressed because of the April 15th tax deadline. How could you be making all the money they do and think rationally for the Beige Book deliberations knowing you have to pay huge taxes too?

Just my opinion. I could be wrong! Do you think they really pay taxes?

---FirstStrike Positions---
  • Eur/Usd: long @ 1.5757, stop 1.5697. Currently still alive for a large 175+ pip profit.
(Any FirstStrike trade not stopped out before Friday gets exited on Friday just before 15:00 CST.)

I am amazed at how well the Euro has done again this week. It single-handedly is keeping the Forex Challenge account from a more serious drawdown. More power to it.

Current equity is $757.69.

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. Please do not use AOL or Yahoo addresses. Nothing personal, but they've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!


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