Hi there 
Â
I hope you are having a great day. Let’s review what happened today.
Â
First we had the Canadian CPI come out. It was a very nice trade, I and most people in my room made close to 40 pips total, between the 2 units. We had to hold on to the 2nd unit for a while, as we expected. I personally expected a bigger move than we got, but we only ended up getting a move of around 30 pips or so total.
Â
Then we had the Canadian Retail Sales coming out. It was a perfect set up, hit my trigger, no conflicts, headline number also came out way worse than expected, the revisions from previous months were bad. I really expected a 30-40 pips move on that one. However, few minutes before the report, Bush mentioned that U.S. will be expandig oil reserves, and because of that speech, the speculators drove the price of oil up, and subsequently since Canada is a big oil exporter, Canadian dollar strengthened by speculation also. It’s very rare that we have current events that cause such conflicts on our news trades, but it happened this time. It completely muted the move. I gave an exit to my room at approximately break even price, but decided to hold on a bit longer, and ended up taking a loss of around -15 pips per unit.Â
Â
Then we had the Australian CPI come out. It hit my short trigger. It was a very nice move down in the AUD/USD pair by well over 80 pips. However, right after the number was released, we saw some crazy whipsaw action, and because of that, I felt a bit nervous holding on to my position, and gave an exit to everyone at break even price. Some people in my room held on for longer, and made a bunch of money, others exited at the spike retrace and lost some, but I would say the majority ended up with plus or minus 2 pips, so basically break even. Very unfortunate…after seeing the move, I wish I held on for longer  But in all honesty, I didn’t expect such big move. Back in July, we saw a deviation of +0.5 from consensus, versus -0.3 deviation today, and back then we only saw a move of 36 pips, versus 80+ pips today. In the last couple of weeks, these New Zealand and Australian reports have been on steroids…ultra hyper…
Â
To watch my live trading videos of these three reports, please go to the link below:
http://www.forexdiamonds.com/performance.htm
I strongly recommend watching them, because you’ll be able to see live tick action, and learn a lot.Â
Â
Rob Grespi didn’t have a very good day either. He only made +5 pips after numerous trades, which brought his performance to +783 pips for the month. Very strange, because the pound made a big break out. Rob Grespi usually strives during such conditions but not this time. 5 pips profit includes spread, but doesn’t include broker commission, so after a commission, it was another small losing day for Rob. To see Rob’s live trading videos, please click here:
http://www.kingforexsignals.com/performance.htm
This Friday, January 26th, 2007, at 10:30 am New York Time, Rob will be conducting a presentation, explaining his trading style, and then taking questions. This session will be open to all members of Secret Forex Society. If you are reading this email, obviously it means that you are a member, and you are invited. If you want to join us, here are the login details:
www.omNovia.com/sc2/forex/kingforex (Password: king1765)
The password will start working on Friday at 10:15 am. I can only take in so many people into the room, once all spaces are filled up, the password will stop working. So don’t be late.Â
Â
Remember, Rob Grespi makes close to 1 million dollars per year on his own account. He used to trade currencies for Deutsche bank, and in December of 2006 he was offered a job at Credit Suisse, with a salary of 750,000 Euros per year, plus bonuses. He turned down that offer, obviously because he makes as much trading on his own, and he didn’t want to give up his freedom and become a bank slave once again. So bottom line is, if you were wondering how banks operate on the inside, and how they make money in forex, this Friday’s session should be a perfect opportunity. Write down your questions, and I hope to see you there.
Â
On a positive note to conclude this review, a trader from JP Morgan lost $218 million today on a speculative trade on the GBP/USD. Bank of China dumped the pounds earlier today during the UK session, then JP Morgan followed the lead. Then a big Middle Eastern bank bought a bunch of pounds, and reversed the direction, and caused a very big loss to JP Morgan. I hope that trader that lost so much didn’t lose his job… I am sure you won’t hear about this on the news, but the loss could be seen by one of my friends on the interbank feed in the order flows. Why is it a positive note? Well…apparently bank traders lose money too once in a while. And if you broke even today, or had a small loss, I hope it wasn’t as much as $218 million, and you should be happy
Â
Okay, enough reviewing. Let’s talk about what’s going on tomorrow.
Â
1. Wednesday, January 24th, 2007 (4:30 am New York Time) UK
We have GDP coming out of UK for the 4th quarter. Expectations is that the number will come out at 0.7%. A trigger of 0.1% deviation either direction would normally be sufficient, however, during this time, we also have BOE meeting minutes coming out, which could cause a conflict. Therefore the triggers must be more conservative. If the number comes out at 0.9% or higher, I may possibly go long on GBP/USD. If the number comes out at 0.5% or lower, I may possibly go short on GBP/USD. It’s hard to identify a conflict out of the minutes. I would just have to look and see. But basically if my trigger is hit, just try to catch the initial spike.
Â
2. Wednesday, January 24th, 2007 (3:00 pm New York Time) New Zealand
Then we have New Zealand interest rate statement coming out. After such negative CPI and retail sales last week, it’s expected that New Zealand will keep the rates unchanged. If there is a hike to 7.50%, I may possibly go long on NZD/USD. There is a possibility that NZD/USD will weaken if the rates are unchanged…but it may be too risky to short it. If you participate in carry trades, just look for a dip in NZD/JPY to get that pair at a good price, in case there is no hike. Going short New Zealand dollar on no rate hike would be too risky in my opinion. I’ll do more research about that. I’ll see what the New Zealand newspapers are talking about, and may change my opinion, but at this point, I think only a long in case of a hike is safe.
Â
That’s all for today  Remember, if you wanted to sign up for Rob Grespi’s trading signals at a heavily discounted price, tomorrow is the day to do that. Wait for a link tomorrow Wednesday at 11:00 pm New York Time. Only people on the waiting list will get the special link. You can join the waiting list by going here: http://www.kingforexsignals.com/signup.htm
Â
To Our Success!
-Felix Homogratus
1617 Broadway St., Suite 1001
New York, NY 10002
USA
