Not often I’d admit publicly that I am wrong, but here’s what happened…
Bernanke and gang (FOMC) decided to leave the Federal Funds Rate decision unchanged once again during the Tuesday August 10 meeting, but the real surprise came with the bearish tone over US economy growth and the decision to reinvest principle payments on mortgage assets and maturing debts… This sent demand for U.S. Treasury soaring and helped the equity market recover immediately just as predicted in my analysis… I took a live trade in my Mastermind Mentoring Trade Room and made 63 pips in less than 30 minutes as you can see in the video below (recorded live).
You might be wondering after you watched this video, what went wrong? Well, my forecast after the FOMC meeting was for stronger EUR/USD to possibly test the 1.3300 area, but if you’ve been following the market, you know that after a brief touch around the 1.3220, EUR/USD has been dropping like a rock, and at the time of writing this analysis, EUR/USD is at 1.2860, or 360 pips from the high!
However, this is where having a plan and using good money management kicks in like a life saving parachute. Even if you are wrong initially, if you just follow the formula, similar to my 10Kto1MM Trading Formula, you can still end up with as much as +60 pips off on this trade…
Of course I wasn’t TOTALLY wrong, I knew eventually EUR/USD is going to drop down to even below the 1.1800 area, and I guess weak earning reports in Europe, China’s moderate economic figures, and FOMC’s weak outlook for the U.S. economy spooked the market and pushed both USD and JPY to their best levels in a long time…
This is what I wrote in my Upcoming News on Sunday:
Another important observation is the fact that USD is still a safe-haven currency, but the market reacted though no one was told about this. The immediate outlook sounds bleak for the US with the job’s number worsening, but floating funds into Euro and JPY is just not the answer. That’s another reason I believe we are on the verge of a major reversal soon… Statistically speaking, after several weeks in a row of USD weakness, the chances of a rebound is more likely than ever. A small news could spark snowball effect of profit taking and rebalancing of portfolios, therefore I’d use extreme caution at following the current trend (Sell USD) this week.
So what’s coming next? I believe there is a huge opportunity at going LONG on the USD/JPY pair at above 84.70 for a long-term trade. This is precisely the type of trading I’ll be issuing in my 10Kto1MM program, and I think the potential of this one trade is so huge that it alone could make our quota and reach phase 1…
If you are interested in my Mastermind Mentoring and 10Kto1MM program, you can join now. Registration is open and visit my website for detail:
Thanks,
Henry Liu
Related posts:
- US FOMC Meeting Minutes 09/02/09
- US FOMC Meeting Minutes 10/14/09
- We are LIVE – 10kto1mm Phase I and beyond…
- Forex Analysis U.S. FOMC Interest Rate 09/21/11
- US Interest Rate & FOMC Statement – 06/24/09
- US ISM Non-Manufacturing PMI 11/04/09
- Forex Analysis For US FOMC Minutes 07/12/11
- Forex News Trading Australia RBA Interest Rate Decision 12/06/10
- Forex Analysis – FOMC Meeting Minutes
- UK Retail Sales m/m 10/22/09
