WARNING: This text is a word-for-word transcription of Mac’s daily forex trading video. That means the writing will reflect the way he speaks, if anything seems out of place, please refer to the forex video on the page.
All right, everybody, we’ve got a ton of stuff going on, so this is going to be a rather short and sweet one today. The British pound saw a lot of volatility coming off of the European opening. See, here it’s three o’clock in the morning. Around one and two o’clock we had a lot of compression coming into the market and then all of a sudden this explosion to the upside. The pound, the yen, the pound, the euro, I mean everything it seemed like was up against the US dollar today.
Which also strangely enough, the US equities markets were up at the same time. So let’s focus back over here on the daily. I’ve been talking about this for literally six months. We’ve got this bottoming process which is coming to fruition.
You can see we had our breakout from our prior resistance area over here. Last week was our little dipper and now we are off to the races. What this means is, number one, we’ve got to shift our money management thinking to letting more of the position ride. We’re going to have to monitor this as we go along, because we don’t want to just turn our brains off.
We want to make sure that we are staying on top of the market; that we’re staying on top of the patterns. In fact, the best way for you to use these videos and to get consistent is to key in on what I’m talking about when it comes to the market commentary.
You see, just getting some guy telling you “buy here” or “sell there” is not the total solution. Because we’ve all been in situations where we’ve had perfect instructions and simply haven’t followed them.
In fact, I’m kind of smiling because I’m thinking of when I was a teenager. I was getting ready to go into the military and a friend of mine, his dad had, at that time, been in the army for 20 years. We were sitting down at the TV watching the original MASH movie, and probably most of you can relate to that.
I’m watching this wacky scene where these officers are carrying on and they’ve got a still in their tent and the supply sergeant was bartering for stuff. It was just this total chaotic scene you wouldn’t normally think when you picture the military. We all picture this drill team that’s in perfect precision marching somewhere.
I looked at him and I said, “Wow, I’m really glad the army’s not like that.” He looked at me and I’ll never forget it. He said, “How do you know it’s not?” OK. So, of course, later on I went to find out exactly what it was like.
One of the things that will hamper our success in any endeavor is continuing to try and put our impression or our beliefs onto something else. Whether it’s a job, whether it’s our marriage, whether it’s shoot playing basketball, or it’s the market. We’ve got to realize that there’s the way things really are, and then there’s the way that we would like them to be. Quite often it seems those two don’t match up.
Well the easiest way to resolve that conflict is to observe what’s going on and to adjust and make modifications to what it is that we’re doing. So let’s stay focused on the trend. We do have at this point a nice trending market.
At this point, nothing is shaping up as far as patterns for a particular breakout. We’re starting to develop these typical vacuum areas that I talk about in the kit, as the market is breaking to the upside year, which can make it somewhat difficult to key in on areas to buy or to sell.
Let me back up a little bit here. We still have to remember. Let me see if I can fit it all the way in. Oh, I don’t think I can. We have a resistance area just above the market at 6659. I shouldn’t say just above, a couple hundred points above.
We’ve got to keep that in mind for a possible stopping point with the market. We’re still in the resistance zone and so we’ve got to be ready for a retracement back down to 6380. I’d actually like to see the market come back down to 6205, to get a nice good retest.
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