BuyForexSignals.com

Hi there

How are you doing today? I hope you are having a great day Let’s first review what happened earlier today.

As you know, there were three reports that came out today that we were watching and possibly trading. First was Durable Goods Orders, which came out WAY worse than expected, and hit my trigger to go long on GBP/USD. Some economists are blaming this report for the huge stock market drop today. Since I generally don’t trade stocks, I can tell you that the impact on the dollar was very minimal from this report. Mostly probably because the dollar was oversold already. The move on the GBP/USD was very much muted, for a total of around 20 pips or so. I still ended up squeezing a few pips on the initial spike, and then a few pips on the second wave trade. I hope you made some pips on that as well. Then we had Consumer Confidence and Existing Home Sales coming out. Both came way better than expected, consumer confidence hit my short trigger on GBP/USD. We saw a move of around 45 pips total or so. That was a nice trade, the move didn’t start right away, the price couldn’t find itself for about a minute, so it was a perfect opportunity for entry. I hope you made some pips on this report as well. Japanese report came out pretty much as expected, so it was a no trade. I do highly recommend that you watch today’s live trading videos to learn a lot. Especially watch the video about consumer confidence. Here is the link: http://www.forexdiamonds.com/performance.htm

Rob Grespi from kingforexsignals.com had a decent day today. He took quite a few trades. A lot of them were small losers, but the winners were very large. He made a total of +85 pips today, which brought his performance up to +1,347 pips for this month so far. Let’s hope that he can finish off the month today, and break the +1,500 target You can watch live trading videos from Rob by going to this link: http://www.kingforexsignals.com/tradedetails/0207 Pay attention to the GBP/JPY short that he gave at 2:31 am. That position made +67 pips within 3 minutes.

Let’s now talk about what’s going on tomorrow. In the morning at 2:00 am New York Time, we have German Retail Sales coming out, but generally the market doesn’t care about this report at all. Then we have Swiss KOF Leading Index coming out at 5:30 am New York Time, and if the deviation is big, USD/CHF may move by about 20 pips or so. So if you are in any CHF positions at that time, please be aware. I won’t be trading this report, because it’s simply not big enough for me.

1. Wednesday, February 28th, 2007 (8:30 am New York Time) USA
We have US GDP coming out for the 4th quarter. Remember…last month we had the first advance reading of the report, which read at 3%. This month we have the first revision of that reading, as more data was gathered. It’s expected that the number this month will be significantly lower than it was last month. Though consensus varies between 1.5 to 3.0%, most economists feel that the number will read at approximately 2.3% to 2.4%. My job is to give you safe triggers for this trade. So I feel that if the number comes out reading at 3% or higher, it would be good for the dollar short term, so we may see GBP/USD go down by 50 to 70 pips or more. If the number comes out at 1.8% or lower, it would match the lowest reading in over 5 years so it should be bad for the dollar short term, therefore we may see GBP/USD go up by 50 to 70 pips or more. This report can be very nasty and unpredictable, so watch out for crazy retracements which can come rapidly. I wouldn’t hesitate to take profits or at least lock in profits with a stop/loss, once there are some. If you can’t get in before the spike, I suggest not chasing, but waiting for retracement. I personally will probably trade with less conservative trigger than I gave you, but I haven’t yet decided what that will be.

2. Wednesday, February 28th, 2007 (9:45 am New York Time) USA
We have Chicago PMI coming out. This report wasn’t as important back in 2006, but towards the end of 2006 and beginning of this year, it became a super hot report that everybody watches, in hopes to get hints of what ISM Manufacturing will come out. Remember…Chicago PMI measures the Chicago area of manufacturing, which is considered the heartland of manufacturing, and is supposed to give hints about the big boy ISM Manufacturing. It’s expected that Chicago PMI will come out at around 50.0 or so. If the number comes out at 54.0 or higher, it would probably be good for the dollar short term, and we may see GBP/USD move down by around 50 to 70 pips or more. If the number comes out at 46.0 or lower, it would be an absolutely shockingly low number, and we may see GBP/USD move up by around 50 to 70 pips or more. This move should be nice and slow, and may take up to an hour to fully manifest, initial spike shouldn’t be that big, so there should be enough time to get into this move. I would chase if the move starts happening rapidly. I personally will probably trade with less conservative triggers.

3. Wednesday, February 28th, 2007 (10:00 am New York Time) USA
Then we have New Home Sales coming out for the month of January. This number is important, but it rarely deviates. It is expected to come out at around 1080K or so. Even though new home sales only constitutes for about 15% of all home sales, this is extremely important 15%, because it takes confidence to buy a new home, since they are generally more expensive, and when people buy new homes, there are generally a lot of other items go into them, as opposed to existing homes. So bottom line is this indicator is important. If it comes out at 1200K or higher, it should be good for the dollar, so we may possibly see GBP/USD decrease by around 50 to 70 pips or more. If the number comes out at 978K or lower, it would be the lowest reading since February of 2003, and would be bad for the dollar, so GBP/USD may increase by around 50 to 70 pips or more. I honestly have never seen such big deviation as I am giving you triggers for, so I am not sure whether this move will be a huge fast spike, or a sustained move, if my triggers are hit. Just be very aware, and manage your trade by locking in profits with a stop/loss. I personally may pick a bit less conservative triggers, but not much less conservative than I gave you.

4. Wednesday, February 28th, 2007 (10:00 am New York Time) USA
We also have Bernanke speech at the same time as new home sales, but Bernanke speech usually starts several minutes after 10:00 am. So there should be enough time to analyze and trade new home sales. But I would be very much aware of the Bernanke speech, and would exit my new home sales positions before he starts speaking. I will also be trading Bernanke speech, but since his speech will be up in the air, I am not sure what exactly will be my long or short triggers. So unless you are in forexdiamonds.com room, or you know how to trade this yourself, I would suggest to stay out.

That’s all I have to say about tomorrow Remember, if you wanted to get into Rob Grespi’s group via scholarship special, make sure you are on the waiting list, tomorrow, Wednesday, I will be sending a special invitation email at 11:00 pm New York Time sharp. Waiting list can be joined through this link: http://www.kingforexsignals.com/join+us

To Our Success!
-Felix Homogratus

1617 Broadway St., Suite 1001
New York, NY 10002
USA

Hi there

I hope you are having a great day I know today was a slow day in terms of trading. I didn’t trade at all, since there were no important news announcements. If you still didn’t watch my live trading videos from Friday, I suggest you review them to learn a lot. You can watch them on this link:
http://www.forexdiamonds.com/performance.htm

Regardless of slow day, Rob Grespi still traded, and made a few pips. Of course, it wasn’t like Friday, where he made +107 pips. Today, he only made +27 pips total, which brought his performance for February so far to +1,262 pips total. He still has two more trading days to go until the end of the month You can watch his live trading videos by going to this link:
http://www.kingforexsignals.com/tradedetails/0207

Okay…let’s now talk about the day tomorrow I am very excited. We have a few decent trading opportunities.

1. Tuesday, February 27th, 2007 (8:30 am New York Time) USA
We have US Durable Goods coming out. Basically durable goods are orders that are placed to local manufacturers and companies for goods that have a lifespan for over 3 years. We have three numbers. First is Headline Durable Goods, which includes all orders. Second is Durable Goods X trasportation, which excludes all transportation related items, like cars, airplanes, etc. Third is Durable Goods X defense, which excludes all items that were placed by the military, like machine guns, tanks, etc. The number that most traders and economists focus on is the Durable Goods X Transportation, and I will focus on that as well. This indicator has some importance, but it’s not that important, and it has a lot of components, which complicate the situation a bit. So the moves on this report are usually quite fast and not sustained, unless the deviation is huge. And even then…remember last month? The X transportation number came out at 2.3% versus 0.5% expected, there were no conflicts, and we only saw a quick spike on GBP/USD of 30 pips, and then the price turned around, and went over 50 pips in the opposite direction. This month, the expectations of this number are at -0.2%, but the consensus among economists are all over the place, mostly leaning towards a negative reading though. If the number comes out at 1.5% or higher, it should be good for the dollar, so you can possibly go short on GBP/USD and expect around 30 pips move. If the number comes out at -2.0% or more negative, you can possibly go long on GBP/USD and also expect 30 pips move. If you don’t have Secret News Weapon or any other program that can get you in before the spike, I strongly recommend not to chase the move, wait and only get in if the price comes back to pre-release price. Also, watch out for the headline number, and it conflicts, I recommend staying out. I may personally trade with less conservative triggers than I gave you, but since a lot of beginners receive my signals, I prefer to give safer triggers in my emails.

2. Tuesday, February 27th, 2007 (10:00 am New York Time) USA
Then we have Consumer Confidence and Existing home sales coming out of the US. It is expected that consumer confidence will come out at around 108.5, which is lower than previous reading of 110.3. Existing home sales are expected to come out at 6.24M. Both numbers are important, however, existing home sales generally don’t deviate that much. Economists can predict this number very accurately. Because of that, my focus for initial spike will be on consumer confidence. If that number comes out at 111.0 or higher, it would be the highest reading in several years, should be good for the dollar, and we might see GBP/USD go down by around 50 pips or more. If the consumer confidence comes out at 105.0 or lower, it would be a huge drop from last reading of 110.3, so bad for the dollar, so we might see GBP/USD go up by around 50 pips or more. Again, I personally will probably use less conservative triggers, but if you want to be on a safer side, these triggers are good. Unlike durable goods, if you don’t have Secret News Weapon or forexdiamonds.com service, you may want to chase this position, as long as there are no conflicts on housing number, and you can get in within 15 to 20 pips of the initial move or better. Of course if there is a conflict on existing home sales, the move will probably be muted, and possibly even reversed…depending on how bad the conflict is. So if existing home sales conflict, I would get out rather sooner than later, or not trade at all.

3. Tuesday, February 27th, 2007 (6:50 pm New York Time) JAPAN
Then we have Industrial Production and Retail Sales coming out of Japan. Believe it or not, but traders don’t really care much about Japanese retail sales readings. It makes sense…since everybody focuses on the exports component of this small country with second largest economy in the world. And obviously exports heavily depend on industrial production, which includes both mining and manufacturing…obviously mining is a very small component, because there is not much to mine in Japan If the Industrial Production comes out at 0% or higher, it would be good for the yen, so we may see USD/JPY move down by around 50 to 60 pips. If the Industrial Production comes out at -3% or more negative, it would be the biggest drop since February of 2004, and probably would be bad for the yen, so we may possibly see USD/JPY go up by 50 to 60 pips. If the triggers are hit on the industrial production, I wouldn’t worry too much about conflicts on retail sales, unless the retail sales comes out deviating by 0.5% or more and is in the opposite direction, and even then it may be a good idea to get in at a better price and still go towards the direction of industrial production. It may take up to 1 hour for this move to fully manifest, assuming that my triggers are hit. So, if you don’t have a program to get you in before the spike, and my triggers are hit, you may want to chase, as long as your entry is within 15 pips or better.

That’s all for tomorrow No matter what happens…don’t worry…be happy

To Our Success!
-Felix Homogratus

1617 Broadway St., Suite 1001
New York, NY 10002
USA

Hi there

I hope you had and still having a good weekend Let’s first review what happened last Friday.

We had two news reports that we were watching, we had the German IFO and UK GDP. As you may already know, neither one of them hit my triggers, so it was a no trade. I did give a trade after the spike on the German IFO, which profited around +7 pips. No big deal, but pleasant. I suggest you watch the live trading video in order to learn some useful things. Here is the link:
http://www.forexdiamonds.com/performance.htm

Rob Grespi did fantastic again on Friday. He had 9 trades, two of them were very small losers, one break even, and 6 were winners, which brought total performance to +107 pips, which brought his performance for February so far to +1,235 pips total. To see Rob’s live trading videos, please go to this link: http://www.kingforexsignals.com/tradedetails/0207

This week is a very busy week on news, however tomorrow, Monday, there is nothing tradable. We do have some good possibilities on Tuesday, so wait for my email tomorrow

If you were interested in getting Secret News Weapon at scholarship special, don’t forget, it will be tomorrow, Monday, at 11:00 pm New York Time. So make sure you are on the waiting list, which can be joined here: https://www.secretnewsweapon.com/buyit.html

That’s all

To Our Success!
-Felix Homogratus

Hi there

I hope you are having a great day as always Let’s first review what happened earlier today.

We had no fundamental news announcements that were worth watching today, therefore no fundamental trades If you still didn’t watch the videos from yesterday, please go to this link to watch them: http://forexdiamonds.com/performance.htm

Rob Grespi from kingforexsignals.com had a decent day today. He had a great London Session, making +84 pips total, but then New York session wasn’t so good. He ended up taking two break even trades and two losing trades, which caused a total loss of -24 pips total. So overall for today, he is profitable by +60 pips, which brought his performance for the month to +1128 pips total. I suggest watching his live trading videos by going to this link: http://www.kingforexsignals.com/tradedetails/0207

Okay, enough reviewing Let’s talk about what’s going on tomorrow, Friday, February 23rd. And by the way, February 23rd is a big holiday in Russia. It’s the day of all armed forces, so if you have some friends that are Russian spies, or former KGB agents, make sure to congratulate them. If you are a user of Secret News Weapon, and have a technical question, you may not get a response tomorrow, because some of the spies in our technical department may be drunk and not very functional.

1. Friday, February 23rd, 2007 (4:00 am New York Time) GERMANY
We have German IFO coming out, which is a great measurement of business climate in Germany, and since Germany is the major country within Euro zone, Euro usually reacts to this number. We have two major numbers coming out. First is the German IFO Business Climate Index, and second is the German IFO Business Expectations Index. My main focus will be on the business climate number, that’s expected to come out at 107.5. If the number comes out at 110 or higher, you can possibly go long on EUR/USD, and expect a move of around 35 to 50 pips. If the number comes out at 105 or lower, you can possibly go short on EUR/USD, and expect a move of around 35 to 50 pips also. Obviously you have to take into consideration some strong price levels before the report, and make sure that there is no big conflict of over 1.0 point on the Business Expectations Index, that’s expected at around 103.2.

2. Friday, February 23rd, 2007 (4:30 am New York Time) UK
We have UK GDP number coming out. Most likely this will be a no trade, because this is second preliminary report for the 4th quarter. Remember, last month we had the first report for fourth quarter, now as more data is gathered, we will have second report for the same quarter, and next month as even more data is gathered, we’ll have final report for the 4th quarter. Obviously, the biggest chance of deviation is on the very first reporting, on the second and third reporting for the same quarter, the deviations are usually non-existent, because it’s basically the same data that’s being reported just more of it. But in any case, it is expected that the UK GDP for the 4th quarter of 2006 will read at 0.8%, which is the same as it was last month. If the reading is at 1.0% or higher, you can possibly go long on GBP/USD, and expect a move of around 50 pips. If the reading is at 0.6% or lower, you can possibly go short on GBP/USD, and expect a move of around 50 pips also. There are no conflicting reports that are released at the same time, just watch out for any strong price levels…and that’s all

I hope we make some pips tomorrow I hope you will have a wonderful weekend, and I’ll write my next signal on Sunday night

To Our Success!
-Felix Homogratus

1617 Broadway St., Suite 1001
New York, NY 10002
USA

Hi there

I hope you are having a great day today Let’s first review what happened earlier.

We had two trades that we were watching and possibly trading today. We had the BOE minutes, which pretty much came out as expected and didn’t hit my trigger, so it was a no trade. We also had US CPI core that we were watching. That didn’t hit the trigger that I sent you yesterday, but I personally went in on a +0.1% deviation, and made around +20 pips total profit. The move wasn’t as big as I was expecting it to be, but it was still very nice pleasant profit. I suggest watching my live trading videos, by going to this link: http://forexdiamonds.com/join.htm

Rob Grespi from kingforexsignals.com had another phenomenal day yesterday. He took seven trades. Two of them were small losers, and five of them were pretty big winners. They yielded a total profit of +99 pips total, which brought his performance for the month of February to +1,068 pips total so far. I suggest watching his live trading videos by going to this link: http://www.kingforexsignals.com/tradedetails/0207 His trade that he took right after the BOE minutes was especially nice

Tomorrow, I consider completely flat, in terms of fundamentals. Nothing is worth watching or trading, at least according to my standards. We do have a couple of decent trade possibilities on Friday, so stay tuned to my email tomorrow, Thursday.

Remember…if you wanted to trade live with me via my forexdiamonds.com service, I will be taking few people tomorrow at a scholarship special price, so if you are interested, make sure you are on the waiting list, and wait for email tomorrow, Thursday at 11:00 pm New York Time. Here is the link to get on the waiting list: http://forexdiamonds.com/join.htm

To Our Success!
-Felix Homogratus

1617 Broadway St., Suite 1001
New York, NY 10002
USA

Hi there

I hope you are having a great day today I am currently stressed and tired after the BOJ interest rate decision, that’s why I am writing late, I just finished trading that. I was watching it for almost 3 hours, waiting for the official announcement. At approximately 10:50 pm New York Time, Fukui, the governor of Bank of Japan (BOJ), has suggested an interest rate hike. I gave a short signal on two units on GBP/JPY at approximately 235.10, and exit at approximately 234.20. Unfortunately Oanda was playing games with everyone, shutting down every 5 minutes and then restarting, because they were afraid that traders will take a trade like that and make money. So some people with Oanda got filled and others didn’t get filled. Most other people that took the trade on other brokers made a bunch of pips, some over 100 pips. I personally had a limit order set at 234.90, but got slipped and got filled at 234.50 or so, I still made well over 20 pips per unit, so 40 total, but it could’ve been more. Then since the yen strengthened so much based on this Fukui statement, I have suggested not to go short if the rate is officially hiked, because it’s already priced in, but wait for a vote, and comments. The vote came out 8-1, which was very bullish for the yen, so I gave a short on one unit at 234.93, with a stop/loss at 235.10. After comments came out of Japan, saying that they will keep the rates “low”, the GBP/JPY started strengthening, because it was bearish for the yen. I just told people to close their short positions, and told them that GBP/JPY will probably strengthen, but personally decided to stay out of that move. Some people took that long and made a bunch of pips, others stayed out with me, and didn’t lose any So that’s the story of the day, it was mostly a very positive overall trade.

We also had Canadian CPI coming out earlier today, but that was a no trade, because it came out exactly as expected. If you want to learn a lot, I suggest going to this link to watch live trading videos:
http://www.forexdiamonds.com/performance.htm

Rob Grespi from kingforexsignals.com took quite a few trades yesterday, with some small losers and some big winners, for a total pip count of +72 pips, which brought his performance up to +979 pips for the month of February so far. I strongly recommend going to this link and watching his live trading videos: http://www.kingforexsignals.com/tradedetails/0207

Let’s now briefly talk about on what’s going on tomorrow, Wednesday.

1. Wednesday, February 21st, 2007 (4:30 am New York Time) UK
We have UK BOE minutes coming out from previous interest rate announcement, where UK government kept rates unchanged. The most important thing in this report will be the vote on the decision. Just to be safe, if you will be trading this report on your own, and the vote is at 6:3 or 5:4, you can possibly go long on GBP/USD, and expect a move of around 30 to 50 pips. That’s the only suggestion I have for this one. You could try to go short on GBP/USD in case the vote is 9:0, but it maybe a slightly riskier trade that may recover back a lot quicker.

2. Wednesday, February 21st, 2007 (8:30 am New York Time) USA
Then we have CPI coming out of the US. I am planning to focus on CPI Ex Food and Energy (MoM), which is expected at around 0.2%. If the number reads at 0.4% or higher, it would signify extremely strong inflation, and you can possibly go short on GBP/USD. If the reading is at 0.0% or lower, it would signify no growth from previous month in inflation, and may possibly be bad for the dollar, so you can possibly go long on GBP/USD. These triggers are relatively safe triggers that may create a move beyond initial spike. If my triggers are hit, I would possibly expect a move of at least 50 to 70 pips or more.

3. Wednesday, February 21st, 2007 (2:00 pm New York Time) USA
Then we have FOMC meeting minutes coming out of the US. This will be a bit too difficult to explain on how to trade on your own, and price action from CPI will play a role also. So unless you know what you are doing, I suggest staying out of the market at this time.

That’s all for tomorrow If you are interested to try to get into kingforexsignals.com at a special scholarship special price, please make sure that you are on the waiting list, which you can join here: http://www.kingforexsignals.com/join+us, and wait for an email tomorrow, Wednesday, at 11:00 pm New York Time sharp.

To Our Success!
-Felix Homogratus

1617 Broadway St., Suite 1001
New York, NY 10002
USA

Hi there

I hope you are having a wonderful day today Today’s trading was slow due to the President’s day in the US and the Asian holidays. However, tomorrow is a very big day that could potentially bring well over 100 pips But before I go there, let’s quickly review what happened today.

I personally didn’t trade today, because there were no important economic news announcements. Rob Grespi took three trades today. One was a break even, another one made +24 pips, and another one lost -2 pips. So the total for today for Rob was +22 pips, which brought his performance for February to +907 pips total. I suggest seeing his live trading videos by going to this link:
http://www.kingforexsignals.com/tradedetails/0207

Now, let’s talk about the exciting day tomorrow

1. Tuesday, February 20th, 2007 (7:00 am New York Time) CANADA
We have Canadian CPI figures coming out for the month of January. As you may already know, CPI is the most watched inflation measure out of Canada, and its reading may eventually affect interest rate policy for Canada. My focus will be on core monthly CPI core, which last month came out at -0.2%. Because of such drop last month, they are expecting a slight recovery in January to 0.1%. If the number comes out again at -0.2%, it would be the biggest back to back core CPI drop since end of 2001, and therefore may be bad for the Canadian dollar short term, so you may possibly go long on USD/CAD. If the number comes out at 0.4% or higher, it would signify that previous month’s drop was a fluke, and inflation is still strong, and would probably be good for the Canadian dollar short term, so you can possibly go short on USD/CAD. You can try holding the position either way for around 30 minutes or so, or until around 50 to 60 pips target is reached from pre-release price. I will personally be trading with less conservative triggers, and will be providing less conservative triggers to members of forexdiamonds.com and secretnewsweapon.com, but that’s not because I am trying to be mean to you. Unless you are a member of those services, you probably won’t be able to catch initial spike, and you will need more conservative triggers like I provided here in order to catch second wave trade after initial spike and retracement.

2. Tuesday, February 20th, 2007 (10:00 pm New York Time (tentative))
Then we have probably one of the biggest events happening for the month of February. We have Bank of Japan announcing their interest rate statement. Remember, there have been a lot of controversy and uncertainty of whether Bank of Japan (BOJ) will raise their interest rates this month. Unfortunately there is no really specific time of when the rates will be announced, so I’ll start watching at 10:00 pm New York Time, and will keep watching until the rate is announced…I hope they don’t announce it before 10:00 pm. Or maybe I should say fortunately that there is no specific time Because their interest rate statement will come unpredictably, brokers won’t be able to hike their spreads and there will still be more than normal amounts of speculative liquidity. If Japan hikes the rate to 0.50%, it would be good for the yen, so I may possibly go short on USD/JPY, and plan to hold on to the position for several hours, or even overnight…depending on the price action. If Japan keeps the rate unchanged at 0.25% or cuts it (cut is nearly impossible), but if they keep the rates unchanged, it would be bad for the yen, and I may possibly go long on USD/JPY. If you are in any cross yen carry trades, and they hike the rate, I would possibly suggest reversing, and then re-entering at a better price.
This maybe a tricky trade like it was last month. There is all kind of information that comes in through news wire of different leaks and speculations from different news companies, so all I can say is be careful of where the price is at before the report, and look at price action for several hours prior, to see if there were already any big moves…

That’s all I have to say about tomorrow

To Our Success!
-Felix Homogratus

1617 Broadway St., Suite 1001
New York, NY 10002
USA

Hi there

I hope you are having a very nice weekend. Let’s first review what happened last Friday.

We had US PPI and housing starts coming out together last Friday. As you remember, our focus was on PPI. PPI came out almost exactly as expected, and housing starts came out way way worse than expected. We had a move up in the GBP/USD by around 20 to 25 pips or so, depending on your platorm, and then price went through major retracement, and went way below the pre-release price. I took a long trade when we saw retracement, but unfortunately exited with a -10 pips loss. You can watch the video of this trade by going to this link:
http://forexdiamonds.com/performance.htm

If you took the carry trade that I told you about last week, you should be close to 100 pips in profit, or even more if you got in later at a better price I am still holding, and nicely collecting my interest.

Rob Grespi from kingforexsignals.com as always made a bunch of pips last Friday +119 pips total, which brought his performance for February so far to +885 pips total. To watch Rob’s live trading videos, please go to this link: http://www.kingforexsignals.com/tradedetails/0207

Tomorrow, Monday, we don’t really have any fundamental events going on that I consider worth watching, but we’ll have some interesting things on Tuesday. So just wait for my email tomorrow night

Remember, tomorrow, Monday, February 19th, at 11:00 pm New York Time, I will be taking few more people for Secret News Weapon. If you would like a chance to get in, please go to this link and sign up for the waiting list: https://www.secretnewsweapon.com/buyit.html

To Our Success!
-Felix Homogratus

1617 Broadway St., Suite 1001
New York, NY 10002
USA

Hi there
 
When GBP/JPY was at 240.00 or so, I told people in my forexdiamonds room that whoever had that trade as a carry, it was a great opportunity to take their profits and exit. 
 
Right now, as I am writing this, GBP/JPY is at around 232.67 as I am writing this, and I wanted to tell you that I feel that it’s a great opportunity to start going long and building this carry trade.
 
Now, when you think about building a carry trade, you should not think in the same terms as you normally think when you trade forex.  You have to use much lower leverage, and you have to become a lot more conservative. 
 
Carry trade is a lot more than just pips…carry trade is when you go long on GBP/JPY, and because UK has 5.25% rate, and Japan has 0.25% rate.  When you go long on GBP/JPY, most honest brokers will pay you anywhere between 4.5% to 4.6% in annual interest, which is paid on daily basis.  And when you have your account in dollars, and you are buying pounds, which is twice more expensive, that interest pretty much doubles and ends up being somewhere between 8.85 to 8.90% per year.  So if you buy 100K of GBP/JPY you should be paid about $8500 per year in interest alone, not including the pips you lose or gain. 
 
When I think about a carry trade, I think in terms of amazing opportunity to generate very good passive income…similar to a real estate investment.
 
As an example, I bought only 150,000 of GBP/JPY right now, and this particular position will be paying me over $1000+ per month of passive interest.  That doesn’t include appreciation on that currency or depreciation of course…  Of course, every time it goes down by a pip, I will lose $12.50 or so, and every time it goes up by a pip, I will gain $12.50 or so. 
 
At this time, I am actually begging that it drops another 3,000 pips in the next year, and as it drops I will be adding 75,000 to my position at every 500 pips drop interval.  Now, what I just said may sound crazy, but it’s a crucial mentality to have when you think in terms of carry trades.
 
When you start doing carry trades, you can’t think in terms of being a short term forex speculator, you have to start thinking in terms of being a long term forex landlord.  It’s actually very funny.  As I am writing this email today, I had a very interesting situation happen, which hopefully can put you in the right mentality for a carry trade.  I had someone call me today, offering to sell me their house in Albuquerque, New Mexico for around $135,000.  If I buy that house, I will be able to collect approximately $900 per month in rent net, after paying $50 to $100 per month to the management company to manage it there.  I am planning to pay cash for that house, and what are my risks?  Having had a number of houses, I know that the risks are that stuff will start breaking down, tenants may not pay rent on time.  If I have to evict them, I will lose at least 3 to 4 months of rent, if not more.  If they get pissed off in the eviction process, they can create $10,000 to $20,000 or more in damages to the house.  I have to pay insurance, I have to pay taxes, and the list goes on and on. 
 
So I was driving today, I was thinking about this house deal, and at the same time, I was thinking about the GBP/JPY that I just bought.  Basically…by buying 150,000 worth of GBP/JPY, it’s like I bought a house for $150,000 that’s going to pay me around $1,100 per month in rent, give or take $100 to $200 in case Japan hikes the rate, and the pair starts depreciating.  I am guaranteed to be paid this money every single day like a clock.  I don’t have to worry about renters, I don’t have to worry about paying property taxes, I don’t have to worry about paying insurance.  I don’t have to fork out $150,000 in cash, I just need to make sure I have enough money in my forex account in case it starts dropping.  And what happens if the pair drops 2,000 pips?  Well, I’ll be down -$25,000 dollars.  What is $25,000 to a $150,000 house?  If your house depreciated from $150,000 to $140,000 simply because the land is not going up in value, and the house is getting older, would that really make you panick?  Probably not…  Automatically when you buy a house, you lose pretty much 6% on it, because that’s what it will cost you approximately if you wanted to turn around and sell it…  What if you get a bad renter, he can easily cost you $10,000 to $20,000 in lost rent, maintenance, and damages by the time you get them out… 
 
Now, let’s talk about appreciation…  Why do real estate values go up?  Supply and demand, right?  As an area gets more populated, they don’t make anymore land, so as the number of people increases that want to live in that area and invest in that area, the prices of houses go up.  Let’s talk about carry trades.  Let’s say you have a 150,000 position that pays $1,080 in interest per month, you could just as well compare it to a 150,000 house that pays $1,080 in rent per month.  Wouldn’t you think that quite a few people would want to have that position or house?  But for every buyer there must be a seller.  Buyers want that passive income, and sellers don’t want to give up that passive income, so buyers start offering to sellers their positions for more money.  That’s why GBP/JPY has shot up in the last year by 4,000 pips, to put it in most simplistic terms.  So if you bought $150,000 position of GBP/JPY, not only would you collect $1,000+ of rent per month, but you would also see an appreciation in the amount of 33.3%.  Now 33.3% is assuming that you paid for that position in cash in full…of course you may have used leverage, and only initially put $10,000 to buy that $150,000 position, so you would have actually collected $13,000+ in “rent” for the year, and have gained $50,000 in appreciation value.  And now since that gain of 4,000 pips, it has dropped by 1,000 pips (from 242 to 232).  All of a sudden I see an opportunity again to start building a carry that not only will give passive income of $1,000+ per month, but also has room to appreciate again. 
 
So all of a sudden, when you start thinking about a carry trade in those terms, it becomes a lot less scary and a lot more lucrative.  If you have an account of $10,000, and you want to do carry trade with $150,000, that’s fine, but don’t panic if you are close to being wiped out if it takes further dip and be ready to add to your account if you don’t want your house to go into foreclosure :)  Think of it in terms of real money of $150,000, don’t think of it in terms of 1.5 standard lots.  And if the pair keeps dropping, assuming that interest rates still stay more or less the same, think of it as if you are in a real estate business, and all of a sudden you have an opportunity to buy the house for cheaper that will pay similar rent, and have even more opportunity for appreciation. 
 
And I am not even going to start talking about the underlaying fundamentals behind this trade, where the health of export heavy Japanese nation completely depends on their yen weakness, and how somewhat beneficial it is for the UK to have strong pound, which has allowed a lot of UK citizens to buy up massive amount of real estate in neighboring European countries, has propelled the travel services industry, and has widened profits for a lot of big companies as they sell expensive pounds to buy other cheap currencies, in order to buy cheap goods and raw materials from overseas, and then they resell it to their UK citizens for the expensive pounds again. 
 
I wrote this email not to necessarily get you all hyped up about carry trades.  I wrote it mostly to keep you up to date on what I am doing and also to open up your mind to another great forex investment opportunity, but more than anything, I wanted to make sure that you learn to think in much more real terms when you do longer term carry trades.  If you have a $5,000 account, and you buy 1 standard lot.  Think of what would happen to you if all you had was $5,000 and you wanted to buy a $100,000 house.  If that’s all you had, you’d probably lose all your money relatively quickly and would only benefit the realtor, the government, and the mortgage company.  But if you had a bit more money, you could possibly eventually turn that $100,000 house into an amazing investment.  Overleveraging and not thinking in real terms can kill you…and forex can be a deadly investment…but if you do it right, forex can be the most lucrative investment opportunity that exists out there…
 
Wait for my signal later today for today’s review and tomorrow’s forecast for our short term fundamental trading strategy
 
To Our Success!
-Felix Homogratus

1617 Broadway St., Suite 1001
New York, NY 10002
USA

Hi there
 
I hope you are having a wonderful day today :)  Let’s review what happened earlier today.
 
We had a bunch of different reports coming out, as you remember.  We started off with UK Retail Sales, which hit my trigger, and GBP/USD moved by over 100 pips.  I hope you made some pips on that :)  Unfortunately, I wasn’t able to make any pips on that, because the deviation was so high, that it hit Secret News Weapon and my forexdiamonds safety mechanism, and it gave a no trade.  The safety on that particular report was at 2.  Since the number was expected at 0.2%, and came out at -1.8%, the safety of a deviation of 2 or more got hit and we got no trade.  The reason this safety exists is because we have several news contributors, and it has happened a couple of times when those news contributors made mistakes when they released numbers, and we got fake signals, so the safety was invented to avoid that.  News services can release numbers in wrong format, they can also stick a yearly number instead of monthly number, or add extra zero, et cetera…remember, it’s humans who punch in numbers :)  So we have this safety mechanism in place that when a deviation comes out so off base, we automatically get a no trade.  A deviation of 2 on monthly retail sales out of UK is unheard of.  I honestly believe that this was the biggest historical deviation from consensus ever.  Though I think I could’ve set the safety at three and gotten away with it.  But oh well…we’ll know next time.
 
Then Canadian number didn’t hit our trigger.  Empire Manufacturing out of US was conflicting too much with jobless claims, so it was a no trade either.  TIC came out deviating quite a bit, but it again didn’t hit my trigger.  We got trigger hit on US Industrial Production, and I and people in the room made about 15 pips total on that.  The move was much smaller than I expected.  I don’t think I’ll be trading this indicator next time.  I suggest you watch live trading videos by going to this link.  I am sure you’ll learn a lot http://www.forexdiamonds.com/performance.htm
 
Rob Grespi from kingforexsignals.com had a fantastic day yesterday, making +178 pips total, which brought his performance up to +757 pips so far this month.  He saw a bunch of short orders coming in on GBP/USD before the retail sales.  It seems like some bank traders had inside info, so he took a short 1 minute before the news was announced, everybody in the room got perfect fills, and made a bunch.  Rob Grespi is actually a real prick.  He makes so many pips pretty much every single day.  He rarely has losing days, let alone weeks.  So every time I talk to him, and want to share with him a losing day, or a flat day, I can never relate to him, because he pretty much always makes something.  That guy is totally off balance.  He is like this insensitive heartless predator that just likes to make pips.  He doesn’t realize that every time he makes money on a trade, someone else on the other end is losing, and he doesn’t seem to care…  Anyway, you can go to this link to watch this prick’s live trading videos:
http://www.kingforexsignals.com/robtrades0207.htm
 
Let’s talk about what’s going on tomorrow, Friday.
 
1.  Friday, February 16th, 2007 (8:30 am New York Time)
We have US PPI coming out, together with housing starts.  The focus will probably be on US Core PPI number, which is expected to come out at 0.2%.  If the number comes out at 0.8%, it would be bullish for the dollar short term, so I may possibly go short on GBP/USD. 
If the number comes out at -0.4%, it would be bearish for the dollar short term, so I may possibly go long on GBP/USD.  We also have housing starts and building permits coming out simultaneously.  Housing starts are expected at around 1.61 million.  If there is a conflict in housing starts, I may probably get out immediately.  If there is no conflict, I may try to hold on for about 30 minutes and see what this trade brings. 
 
That’s all for tomorrow
 
To Our Success!
-Felix Homogratus

1617 Broadway St., Suite 1001
New York, NY 10002
USA