HLHB Weekly Update – January 22, 2010

PoD Chart

Skadoosh! Thanks to my revised rules on the HLHB system, I was finally able to get into a trade today. As you can see from the chart above, there was a crossover last Friday, which gave me a nice sell signal. The stochastics were not yet at oversold territory so I set my order 30-pips below the crossover candle. I waited, and waited, and tada, I got triggered on the following candle.

My HLHB system states that I should set a 150-pip profit target of my first position and put a 150-pip trailing stop on the other. Luckily, the profit target of my first position has been hit and my second position is still on the table. I placed a 150-pip trailing stop on my remaining position.

Here are the complete details:

Sold at 1.4377, stop loss at 1.4514 (10 pips above the high of the candle before the crossover candle), first position target 1 hit at 1.4227, second position still active with a 150-pip trailing stop.

Happy, happy, joy, joy… I know, I know I shouldn’t get too emotional but I just can’t help myself. Managed to bag some pips off my EURUSD and AUDUSD trades and get a nice profitable signal on the HLHB system!

In summary, my trades this week were helped by a nice run of risk aversion that hit the markets on Tuesday. After it seemed that it was fundamentals driving the market, it seems that its still risk sentiment that is main catalyst for market moves.

After reading Forex Gump’s recent blog, it seems that a lot of it had to do with reactions to some moves by the Chinese government. Their decisions have sparked some risk aversion in the markets (which also helped my AUDUSD trade bwhahaha!).

On the stateside, it seems like Obama is trying to push for more bank regulations. I’ve been trying to read some articles on this but I don’t quite understand how this will affect the currency markets. Hopefully, I stumble across an article that is an easy read…

  • colstreamer

    Hey Huck that was sweet! My AUD/USD position closed last night too and I bagged myself 190 pips! woo hoo! lol! Well done on your EUR/USD trade I had a short GBP/USD position which got stopped out, grr! Scrathc 100 pips!

    As I understand it, President Obama wants to ban banks from trading on their own accounts, they will still be eble to trade on behalf of clients, but they wont be able to own or sponsor hedge funds and private equity groups… I think what he wants is for banks to just look after investors money rather than trade themselves even though the recent financial crisis wasn’t, as far as i can see, due to banks trading habits but rather bad property loans, lending to people who couldn’t repay essentially. It seems that, along with the proposed new NFA rules the financial sector is set to become very restricted in the US which could see greatly reduced profits for the banks and as they seem to be heavily involved in almost all areas of the markets including forex this could lead to reduced liquidity, and we all know what happens when there’s a bank hioliday….
    Over here the tory opposition party have endorsed Obama’s proposals I think mainly because public outrage at the bank’s bonus culture seems to be a vote winner at the moment, I mean I don’t see how someone can be awarded a bonus for failure but peopel seem to forget that bonusses (or is that boni?? lol!) are taxed quite heavily and that those taxes go to the treasury and fund public services… Either way I feel that should similar regulations be imposed here in london the City would suffer quite badly if investment banks had to be a separate entity they’d find it harder to rise capital. The thing is these practices will still continue just not in the US firms would move away to countries which are not so heavily regulated. This would lead to reduced GDP for the country as a whole, I mean how much do banks contribute to overall GDP??

    This is just what I’ve picked up from what I’ve read in the papers, I could have gotten it wrong and please let me know if I have!!

    :-)

  • colstreamer

    Hey Huck that was sweet! My AUD/USD position closed last night too and I bagged myself 190 pips! woo hoo! lol! Well done on your EUR/USD trade I had a short GBP/USD position which got stopped out, grr! Scrathc 100 pips!

    As I understand it, President Obama wants to ban banks from trading on their own accounts, they will still be eble to trade on behalf of clients, but they wont be able to own or sponsor hedge funds and private equity groups… I think what he wants is for banks to just look after investors money rather than trade themselves even though the recent financial crisis wasn’t, as far as i can see, due to banks trading habits but rather bad property loans, lending to people who couldn’t repay essentially. It seems that, along with the proposed new NFA rules the financial sector is set to become very restricted in the US which could see greatly reduced profits for the banks and as they seem to be heavily involved in almost all areas of the markets including forex this could lead to reduced liquidity, and we all know what happens when there’s a bank hioliday….
    Over here the tory opposition party have endorsed Obama’s proposals I think mainly because public outrage at the bank’s bonus culture seems to be a vote winner at the moment, I mean I don’t see how someone can be awarded a bonus for failure but peopel seem to forget that bonusses (or is that boni?? lol!) are taxed quite heavily and that those taxes go to the treasury and fund public services… Either way I feel that should similar regulations be imposed here in london the City would suffer quite badly if investment banks had to be a separate entity they’d find it harder to rise capital. The thing is these practices will still continue just not in the US firms would move away to countries which are not so heavily regulated. This would lead to reduced GDP for the country as a whole, I mean how much do banks contribute to overall GDP??

    This is just what I’ve picked up from what I’ve read in the papers, I could have gotten it wrong and please let me know if I have!!

    :-)

  • Pipcrawler

    I just wanted to say, great comment colstreamer and you nailed it in my opinion. About the bonus point, most people also don’t realize that not everyone on Wall Street is a CEO or executive. For many, the “bonus” is part of their contract pay as many take a reduction in their yearly salary. In reality, it’s not a “bonus” at all…only by name.

    It’s crazy what’s going on with politicians and Wall Street lately. In my opinion, big government is taking over, regardless of what Obama says on TV. It’s definitely happening here in the Forex market. It’s going to be interesting to see what happens in the next few months….

  • Pipcrawler

    I just wanted to say, great comment colstreamer and you nailed it in my opinion. About the bonus point, most people also don’t realize that not everyone on Wall Street is a CEO or executive. For many, the “bonus” is part of their contract pay as many take a reduction in their yearly salary. In reality, it’s not a “bonus” at all…only by name.

    It’s crazy what’s going on with politicians and Wall Street lately. In my opinion, big government is taking over, regardless of what Obama says on TV. It’s definitely happening here in the Forex market. It’s going to be interesting to see what happens in the next few months….

  • whit

    Here in the states the revolt has begun with the election of a Republican to fill the late Democrat Senator Kennedy’s seat. This has Washington ALL in a twist as the Democrats have lost their “we’ll do as we damn well please” majority in the Senate. Come November election time, you may well see the revolt continue as the long term “good ol’ boys” get their pink slips, and a new regime steps in to try and rectify the mess. How will it all shake out? We’ll just have to go where this bus takes us and see what that destination may be. I’m leaning toward a far more conservative government (compared to what we have now), not so quick to fill the voids by just printing money like there is no tomorrow. For now, Obama’s gravy train is off the rails. Watch at least for a leveling off in the USD for now, and if we can make the turn here in the states, maybe even a bit of a reversal. Had this NOT happened they way it did, we’d all see the dollar drop seriously lower across the board. I think the furor over the bonus’ come from the major institutions cry poor mouth, taking the stimulus/bailout TRILLIONS and handing it out to those who (as mentioned previously) authorized loans they could not have helped but see could never be repaid. Long term it’ll be good for the USD, and spread to do well for other economies as well

  • whit

    Here in the states the revolt has begun with the election of a Republican to fill the late Democrat Senator Kennedy’s seat. This has Washington ALL in a twist as the Democrats have lost their “we’ll do as we damn well please” majority in the Senate. Come November election time, you may well see the revolt continue as the long term “good ol’ boys” get their pink slips, and a new regime steps in to try and rectify the mess. How will it all shake out? We’ll just have to go where this bus takes us and see what that destination may be. I’m leaning toward a far more conservative government (compared to what we have now), not so quick to fill the voids by just printing money like there is no tomorrow. For now, Obama’s gravy train is off the rails. Watch at least for a leveling off in the USD for now, and if we can make the turn here in the states, maybe even a bit of a reversal. Had this NOT happened they way it did, we’d all see the dollar drop seriously lower across the board. I think the furor over the bonus’ come from the major institutions cry poor mouth, taking the stimulus/bailout TRILLIONS and handing it out to those who (as mentioned previously) authorized loans they could not have helped but see could never be repaid. Long term it’ll be good for the USD, and spread to do well for other economies as well