Indecision

The market was full of indecision today. After the US dollar gain over the last couple days, it seemed that the market was ready for a reversal again. It seemed it was struggling to find a direction.

During the Asian session, the dollar did lose ground, especially in the last hour for the pound. As the European session started, the euro seemed to drive the currencies back in favor of the dollar. The yen and pound followed suit with losing ground on the dollar. As the New York session started, a really negative US trade balance report came out driving the dollar to retreat again.

Thus, we had an A-B-C wave (from Elliott Wave theory) back and forth all in the same day. I believe that this is a subwave of the major wave 4. Now, depending on whether this turns out to be a simple wave 4 or complex, this choppiness could last a while. I tend to think that it is a complex wave 4 and that the choppiness will continue for some time. Either way, I'm prepared!

It was a light trading day for me. I only did 11 new trades, closing 12 winners including 5 older trades, and 0 losses. The net pips for today is +330.8 pips, or 0.69% gain.

For the week, the net pips is +2003 pips, or a 4.12% gain.

Here are the daily stats of Friday, November 13, 2009.

Open

High

Low

Close

Pip Interval

GBP/USD	1.6574	1.6704	1.6571	1.6686	133
EUR/USD	1.4849	1.4937	1.4823	1.4901	114
USD/CHF	1.0171	1.0184	1.0101	1.0116	83
USD/JPY	90.35	90.40	89.46	89.60	94
GBP/JPY	149.73	150.40	148.93	149.46	147

What this means:
I have found that the Elliott Wave theory is the best predictor of movement when the currencies are in a trending market. This trend began the second week of October for the pound, and the 1st week of October for the euro.

Also, historically, November tends to be pretty slow. So, I expect this wave 4 to be complex and bounce back and forth at least until December. The likely timing for a Wave 5 movement against the dollar should be the second week of December.

Many of you may think this is all Greek, but the point is that the market does follow patterns. Patterns are predictable and thus the probabilities of profits go up.

Have a good weekend!

May the pips be with us!

The Pipmaster
Email: titangroupfx@gmail.com