Using Stops Is Critical to a Trading Plan
Good Morning,
A HUGE week of fundamentals to deal with:
**Earnings (option traders beware)
**CHIPM - watch new orders and employment sub-components
**ISM Manufacturing - watch new orders and employment sub-components**FOMC - easing?
**BOE - easing?
**ECB - easing?
**unemployment claims
**ISM Services - watch new orders and employment sub-components
**employment report - the 101k estimate seems fair, but there are still risks that it comes in below expectations. One other thought, with the Fed on Wednesday and employment on Friday, will the Fed try to soften the blow if it is a bad number? Could that be a conspiracy theory that the Fed gets the numbers early? I am just saying....
Technically, the SPX has been here before and came back into the range. Even though we broke out above 1375, let's see where we close today. 
Past performance is not indicative of future results
Interesting though that the SPX is breaking out to new highs and the VIX is not at new lows. Can you use the 16.00 area as support?
Past performance is not indicative of future results
Watching USO, it seems to have some resistance around the 50% area - the 35.00 mark:
Past performance is not indicative of future results
In forex, this is a great reason to use stops and to manage your trades. When the equity markets moved down early last week, the USD strengthened. The, the equity markets caught a bid and and the USD sold off. Look at how the AUD/USD went from 1.0400 to 1.0166 and right back up to 1.0500. Management of trades is crucial due to the fact that international intervention could move a forex pair 3 or 4 pennies in a matter of days:
Past performance is not indicative of future results
Those three huge green bars on the far right were lockstep with the equity markets rallying from 1330 to 1380.
To view last week's IBFX Webinar on Trends and Moving Averages, click here.
Happy Trading and Be Environmentally Cool
Coach Brian
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
