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, everyone. It is the last day of 2009, and I hope that in spite of the challenges that may have come up in 2009 and because of the successes that you achieved in 2009 that 2010 will be bigger, brighter, better, and more prosperous than the year before. It is so traditional, isn’t it, that at this time of the year we reflect on what has happened, what we expect, what we hoped for, and what we got.
What my prayer is for you is that as we push day after day and year after year here together that we help you to continue to grow. In fact, right here at the end of the year I’ve spent a considerable amount of time with my coaches and other associates in trading digging and prodding and poking so that we can maximize what we do in 2010, and I’ve got a ton in store as we break into the new year.
So I hope you take this time to relax, reflect, and regather yourself, and what I would suggest of you is that you take this opportunity to recall what I deem the magnificent obsession. Hopefully you’ve realize with the limited amount of time that we can spend together that I am obsessed with trading. I think it’s because of this obsession that I have been able to carry my success to the heights that I have. And if I can share that obsession with you and maybe have a little bit of it rub off on you, all the better.
Now, as we come into the end of the year, you can see the Pound has managed to push up, and we are looking at a four hour bar here. Now, I want to caution you on one thing: not everything in the market happens for very good reasons. So some of what we could be seeing here is simply the closing out of trades coming into this last quarter, which ended right about here.
You’ve seen the British Pound off quite a bit, and so you’re going to have some individuals that are in profit and you’re going to have some individuals that were in losses. I think in both cases you’re going have people trying to book those before the end of the year.
Now, I’ve got to say the reason why I’ve never liked that analogy in the market is not everybody’s fiscal year is January. I’ve got corporations, and very few of them end their fiscal year in January. They may end it some other time. For computing that year’s taxes, some things may change. Also, depending on what jurisdiction you’re in, there may be different year ends as far as taxes are concerned.
Having said all that, though, the main thing that we have to look at is the British Pound bounced. And what do we know? Well, we know that when the Pound had gotten into this area before, we had seen it bounce. It’s bouncing again. All we’re seeing is a pattern repeat. Now, if we are going to see this type of bottoming process start ‑ I’ve been talking about this for a couple days. I’ll continue to talk about the bottoming pattern until the market basically tells us it’s not working anymore.
So, what are we looking for? The next would be the market moving down to a higher low, pushing back up to, then, a lower high. So first, step one, a higher low. Step two, a lower high. Generally speaking, that’s what happens right here in the middle. And it can get a little bit complicated. You can see over here, the market went up and down and up and it jigged all over the place.
Basically, what we’re looking at, in a nutshell, is for the market to stay between that low and this high. If it can do that, then we’ve got an area for the market to start to gather some steam, and it’s where we might see another good trend opportunity like we did over here.
But today is essentially the end of the week. We’ve got ‑ the United States is going to be on holiday tomorrow. So there is really no point in trading, and there is not going to be a video tomorrow or a weekly wrap tomorrow. So take some time off, enjoy the new year. Again, I pray that you have a safe, happy new year, and here is to a wonderful, prosperous 2010.
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