Jul 16 – STAM Market Analysis and Discipline Strategy

Discipline Strategy – lots of rallying around the top of the hour (at 7am) resulting in market order on Cable. Both trades were losers – it looked like we had a false move today – this is the type of move that James and I were trading in 2010/2011 when we doing the London Open trades. Both pairs were flat throughout the Asian session (1H trend was flat) but rallied in the last half hour – creating bullish 7am hourly candles.

It just doesn’t seem right – there was more negative data yesterday – US retail sales came in below expectations – yet the equity markets continued to make further record closes in the US. European equity markets also continue strongly. Additionally, the financial crisis continues in southern Europe with issues for Portugal, Spain, Italy and Greece – but the market seems to ignore all of these.

STAM Strategy

 AUD has had a strong couple of days, gaining against all of the other currencies. Good thing I stayed away from the potential AUDUSD trade yesterday.  

The pairs I am still most interested in watching right now are GBPUSD, EURGBP, AUDUSD and USDJPY – this is because they are in S1 environments and it is strength/weakness combination in each case. Although there are other S1 or S2 setups, they are not strength/weakness combinations – i.e. GBPJPY, GBPCHF, USDCHF and CHFJPY.

On the 4 most interesting pairs I am waiting for retracements and/or appropriate price action before I can take things further, except for Cable on which I already have an open position.
As yesterday, I am also interested to see how EURJPY and EURAUD behave this week as they could transition into S1 environments by the end of the week and would be potential trading setups. The EURAUD momentum has abruptly changed back to bearish momentum from looking bullish yesterday.

No further orders to enter into the market.

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