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Trade Desk Thoughts: Global Equity Markets Still Dominate Forex Trade

Published 12/31/2000, 07:00 PM
Updated 07/22/2009, 03:57 AM

www.TheLFB-Forex.com A Forex Trader Portal

Global equity markets are still dominant, and showing right now an ability to lead Usd valuations around. When we overlay the May through July S&P 500, and dollar index charts over one another we see an inverse correlation in price moves. That will not change until global growth is reported in GDP reads, and that looks to be at least one, and possibly two, quarters away.

Therefore we have to keep an eye on the near-term set-ups that can lead us into longer-term plays, and maintain the thought process that banks 50-70% at 20-30 pips, and lets a smaller amount go for a run. We will be able to reverse that later in the year, but right now the Trade Plans and Signals will stay geared to banking as we go, at least until the trend and momentum reads get aligned on the 4 hour chart reads.

TheLFB Trade Desk Thought Of The Day:

"Successful traders have a plan that they refine, develop and test, and debrief on a daily basis. They share their plan as a work in motion, and not as the Holy Grail. A successful trader accepts that there is always something new to learn, and however good the plan is today, there will be the chance to improve it tomorrow.

Zig Ziegler says; "You are working with no plan? Why? Working without a plan is about as difficult as trying to come back from somewhere that you have never been".

You will become profitable if you achieve success, but success rarely comes without a plan. Success is not counted in cash; success starts with an inner faith, and the ability to listen. However, financial freedom only comes by following a plan."

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