Saturday, August 22, 2009

First and foremost, I'm Right on the money, Forex and Twitter

The first episode of 'Right on the money' has finally arrived! I say finally because the design and layout took some time to figure out. Mainly the design since the layout is pretty much a continuation of the canceled 'Stop Trading!!' segment that ended a few weeks ago. It's back! And hopefully better then ever. In the few week period where it was pretty quite I was mainly on Twitter trying to find some things out. Twitter can be very helpful regarding to Forex trading if you know how to utilize it. Following your favorite Twitter sources can be a huge help in deciding what trade to execute. The issue with Twitter is, that there is so much (mis)information out there it can be sometimes difficult to filter out the 'tweets' that are actually useful for your trade. The best thing to do, when you want to include 'Twitter' in your Forex decision making is to get a 'Twitter desktop client'. Using just twitter.com is useless. A 'client' will actually allow you to search for certain criteria you put in. For example, if you are trading the EUR/USD pair, you can search for that keyword and see all the people that currently having a conversation about the EUR/USD. Also, following, replying and joining in on a conversation is much easier with a twitter program. I'm tried a few out and so far I'm satisfied with 'TweetDeck', which uses Adobe Air. (An iPhone app is also available). You can use multiple accounts to tweet from, and search for different keywords and when you've used it for awhile you can easily navigate through the program, finding what you're looking for and jump in on conversations. But it's particularly handy in Forex and trading in general because you can get the latest scoop right away, which will help with your fundamental trades. This segment 'Right on the money' is also on Twitter at twitter.com/rightonthemoney, where I will tweet some of the trades I make that are mentioned on this blog. That's enough about Twitter now and let's take a look ahead what's maybe going to happen next week in the world of Forex, and trust me, that's a lot!
Why do I say that? Big Ben with positive news that he thinks the recession has past, or at least the worst is over. Words like that and the recovery of the housing market was the reason that Wall Street closed at it's highest point of the year, making the EUR/USD flirting with the 1.44 mark. Fantastic! If only the Obama administration didn't make one of the biggest errors in history mis-calculating an extra 2 Trillion in deficit money, by the way released after the markets close!, it would've been a perfect story! Now especially the last part is over looked because some investors want to ride the Wall Street momentum train further.
It's not going to happen. This is almost a no-brainer! Come on guys! Am I the only one that sees this or does everyone have other information I don't know about?! There's no way the DJIA (let's pick a main indicator) is going to close higher next week! Not with the news that an extra 2 Trillion (and who knows if they're done counting) 'unexpected' deficit, that the Obama administration miscalculated, is looming over the rest. It will directly affect the EUR/USD pair and the USD index as a whole for that matter. A perfect sell opportunity has emerged! With the EUR, once again, way overbought and with the markets the way they are this will be a perfect time to be right on the money! (I can now use that)
Well, especially my pair that I trade regularly. The EUR/USD baby! Get it around this price, maybe even anything above 1.43 with a SL @ 1.44. I expect a huge drop! Correction maybe even to 1.41 by the end of the week, and yes it's that bad. We're due for a slow, very slow recovery and I still stand by my point that the DOW will close over 10K by the end of fall, but until then it'll very shaky.

- Happy trading!

Follow-ups throughout the week and on Twitter!

Disclaimer:

All opinions expressed, trade recommendations/advice on this website are solely of John van der Munnik and are not affiliated with any investment firm or any other organization. You should not make an investment only based using this website VDM Trading for your trading needs without seeking help from your own financial advisor.