[flv:http://www.newsprofiteer.com/100109-usismpmi/100109-usismpmi.mp4 480 360]
10:00am (NY Time) US ISM Manufacturing PMI Forecast 53.9 Previous 52.9
ACTION: USD/JPY BUY 56.0 SELL 51.0
The Institute of Supply Management Manufacturing PMI releases are highly regarded by traders since their inception, and throughout the years they have been proven to be extremely accurate in predicting the long-term trend as well as a leading indicator over the Manufacturing sector in the economy; this will be the first look of the new quarter as these purchasing managers express their opinion over the economy.
The medium measurement is at 50, and any number above the 50 is considered as expansion whereas below 50 is considered as contraction. If we get above 50, market would probably react with optimism and risk appetite sentiment could continue; if the release is below 50, market could react with some disappointment and profit taking could take place immediately after the release.
I’ll be trading this release live and post back the results as soon as I can.
DEFINITION:
“The Institute of Supply Management (ISM) Manufacturing Index measures the activity level of purchasing managers in the manufacturing sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation’s currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of overall economic performance”
UPDATE: Release was worse than expected and the market reacted with little momentum due to Bernake’s speech and pre-market pricing in… I saw a chance to buy EUR/JPY from the bottom and picked up 12 pips in the process… Could have been a better day, but a positive day is a positive day indeed.
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{ 3 comments… read them below or add one }
Hi Henry,
I played this video twice and play the last half of this video 4 times.
It just makes sense what you say it reminded me why I made sooo many bad trades, which was spending to much time chasing and hoping the nothing trades.
Awesome Henry thanks Devin.
Devin:
The pleasure is all mine.
Thanks,
Henry
Hi Henry,
Well, what a great vid. You have given all of us such professional and sound advice. I really do applaud you for your efforts in helping us to control and understand the aspect of trading psychology. Well Done!
I think what you talk about in this vid is so very important, I mean…critically important for the on-going success with forex trading. I have made the mistakes you talk about over and over again, similar to what Devin was talking about previously.
We need much more advice and guidance about this big issue. I’m looking forward to your DVD when it is released as you have mentioned it will also cover this area of trading.
Thank you so much Henry.
Kindest regards,
Bruce Thompson