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<strong>1. INTRODUCTION:</strong>

The roller coaster ride in trading the Forex market continues.

I wrote today’s FUNDAMENTAL TRADERS OVERVIEW (The Premium Service),   or, THE VIEW FROM MY TRADING DESK (The Weekly Fx Drive Thru), towards the end of last week after a frustrating couple of trading sessions.

Writing this article was pretty good timing really, given the week that has just gone by and especially after yesterdays events that followed the U.S. Non Farm Data release. I really do believe that many traders whether in equities / bonds / forex have either, just closed their accounts and given up, or, had their accounts wiped out. I have read so many articles over the past few weeks about how difficult it is to trade at the moment. I have been blogging about this matter since early March and, initially I thought it was just myself finding difficulty. But it appears many different traders are in the same boat. My “trading peers” group, as I call us, have all been on the same page for sometime, so I knew that something was up and it was not just me, but the articles that I have recently read are confirmation.

You can read what I think about it all later in this blog that you are reading, whether it be from the PREMIUM SERVICE or the WEEKLY FX DRIVE THRU. For PREMIUM SERVICE subscribers I have also as promised included a section under TRADER TOPICS that deals with increasing your probabilities in trading.

This week’s blogs are 100% focused on how best to deal with a dysfunctional, chop fest of a market. As I constantly keeping writing and saying use your TRADING PLAN, PLAN YOUR TRADES but for now take smaller position sizes to limit risk. We are traders, but in essence we are RISK ASSESSORS and we apply RISK MANAGEMENT behavior to our day-to-day functionality.

Despite the market shenanigans, the trading accounts related to the PREMIUM SERVICE still showed a profit from the trade set-ups in April. To say that I am delighted is an under-statement of huge proportions. My “trading peers” were basically flat on last month. Sounds good…but the drinks are on me!!

I have updated the format of my reporting on the PREMIUM SERVICE trading performance, it is now linked to one of my computers through excel. If anyone has difficulty understanding the calculations, do not hesitate to contact me via email at either <a href="mailto:drivethru@weeklyfxdrivethru.com">drivethru@weeklyfxdrivethru.com</a> or <a href="mailto:premiumservice@weeklyfxdrivethru.com">premiumservice@weeklyfxdrivethru.com</a> I would be delighted to explain the calculations.

Coming up this week in the news that should be market moving for Forex traders, we have Interest Rate decisions and statements from the RBA, ECB and BOE plus the Yellen testimony and CAD and NZD Employment numbers, a busy week indeed. Get the Prozak, Jack Daniels plus a stress toy on the ready. Like everyone else I cannot predict what is ahead, but given the continued on-going developments between Ukraine and Russia, I would predict a bumpy ride for the foreseeable future…..enjoy!!

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<strong>2. TRADING SUMMARY:</strong>
<p style="text-align: center;"><strong>RADAR, FLASH and FUNDAMENTAL TRADES</strong></p>
<p style="text-align: center;"><strong>APRIL 2014 and YEAR to date:</strong></p>
<p style="text-align: center;">Below I show the up to date performances for my various trading styles. Full excel spreadsheets are in the subscriber area of the PREMIUM SERVICE.</p>
<strong> </strong>

<a href="https://weeklyfxdrivethru.com/wp-content/uploads/2014/05/TRADE-SUMMARY1-03052014.png"><img class="aligncenter size-full wp-image-3584" src="https://weeklyfxdrivethru.com/wp-content/uploads/2014/05/TRADE-SUMMARY1-03052014.png" alt="TRADE SUMMARY1 03052014" width="457" height="414" /></a>

<a href="https://weeklyfxdrivethru.com/wp-content/uploads/2014/05/TRADE-SUMMARY2-03052014.png"><img class="aligncenter size-full wp-image-3585" src="https://weeklyfxdrivethru.com/wp-content/uploads/2014/05/TRADE-SUMMARY2-03052014.png" alt="TRADE SUMMARY2 03052014" width="529" height="418" /></a>

The above examples are for illustration purposes only:

The profitability examples detailed above are based solely upon single lot trading, regardless of lot type. If multiple lot sizes are traded the profitability margins will be different than those shown.

Just to provide more information so you understand where I am coming from with the risk / reward statements above. All of my trades are of different sizes and different size lot types. The above does not reflect the actual trading performance, but it does show you the direction of the performance of the trades placed.

I like to add to trades, profits are taken as the trade progresses and my overall cost average moves several times. All of my trades are of different lot styles. I trade a mixture of micro lots, mini lots and standard lots across my brokers.

The above results simply display your profit or loss if you placed a single lot trade on all the set-ups suggested and did nothing else.

<strong> </strong>

<strong>3. THE FUNDAMENTAL TRADERS OVERVIEW:</strong><strong> </strong>
<p style="text-align: center;"><strong>THE NEW NORMAL…WHAT IS NORMAL?</strong></p>
I do not want to sound like a broken record by complaining continuously about how difficult it is to trade in the current market conditions, but it is my considered opinion after reading, watching and listening to lots and lots of financial data and financial experts….that the current Forex market is 100% dysfunctional and sucks!

Since writing weekly blogs such as THE WEEKLY FX DRIVE THRU, which, I started over two years ago, it has prompted me to research more, get more knowledgeable on fundamental world economic news events and also get more detailed with technical chart analysis. What does make me laugh a little at the moment is that none of that really counts to survive in Forex Trading at the present time.

Almost on a daily basis we see moves up and down by 20-30 S&amp;P points, this volatility is NOT normal, yet it has been something that we have been living with for week and after week after week. The “Chop Fest” that has been the Forex market makes it extremely difficult to trade. There are no real trends like we used to be able to latch onto. It is perilous at times.

Geo-political news like the tensions in Ukraine/Russia are not dominating the Forex moves on a daily basis the way one might of expected. To a large extent the markets appear to ignore the tensions, as nowadays, there are no deployments of troops on the ground in war zones anymore. But every now and then the rhetoric does get a little out of hand and the Forex markets react. I look to GOLD to guide me and then look to the relationship that GOLD and the USD has, and nothing. GOLD doesn't necessarily rise on tensions, in fact I have seen it drop through support but the parallel relationship with the USD is no longer correlated. WTF?

The S&amp;P trades at highs and the AUD/USD and NZD/USD are falling. The S&amp;P around 1,900 is at all-time highs, yet the AUD/USD cannot get above parity. One would have thought that its correlation with the stock market would have seen the AUD/USD at 1.1600 or even higher. WTF?

I can highlight more correlations out of sync, I have written about them in a many previous blogs and I do not want to repeat myself again. The bottom line is correlations are mostly off. We have diverging markets.

Given the market “Yo-Yo” / “Chop Fest”, I can guarantee you that the Forex market has lost many, many home based traders, whether full or part time. In addition, Equity traders will also be feeling the pinch as they have been on the “Buy The Dip” mode for the past six years ever since the financial crisis. This is the major problem of a one sided directional market, because as soon as it changes like it has more recently, the “Chop Fest” virtually negates buying the dip and some very long established traders are getting smashed / creamed.

What is normal?

When I started thinking about writing this three things immediately jumped out from the page and I thought, this will do as a start: -
<ol>
	<li>No Central bank Intervention.</li>
	<li>No Quantitative Easing or equivalent.</li>
	<li>Interest Rates actually go up and move down freely.</li>
</ol>
I think one of the hardest things that all traders are trying to come to terms with is that U.S. Monetary Policy for the past 5 years changed with the introduction of “Tapering”. This did not have the immediate effect that I thought that it would have had, in particular, with USD strength coming through the markets. However, it has created jitters and huge uncertainty as equity markets grab all-time highs and the calls for an equity market pullback, or correction meant that buying at the highs has added to the “Chop Fest” scenario as we are seeing technical chart analysis at extremes. The Forex market is tightly range bound and all this added together with so many inflections points gives us what we have, which is a very volatile, “Chop Fest”.

I want to remain a Forex Trader.
<ul>
	<li>I have given myself the additional responsibility of adding THE PREMIUM SERVICE to my “job”.</li>
</ul>
<ul>
	<li>I describe myself as a Fundamental first then Technical swing trader / longer-term position trader.</li>
</ul>
<ul>
	<li>I select trade-set ups and post them to my subscribers. I have to my best ability tried to ensure even lower risk trades are suggested that will generate $$$.</li>
</ul>
Right now, my trading style from above is out of the window. Like many other Forex traders I have to adapt and survive.

I am a Scalper, a “Pull-Back” trader at best in these conditions, trying to be a swing-trader.

The 80 -100 pip profitable trades have in the main disappeared. I have had to lower my expectations to 20-30 pip trades. I have to exit before I would normally do so. There are hardly any trend trades. I no longer just look at the EUR/USD or USD/JPY. I have traded more exotic pairs in 2014 than the previous 7 years added together. I am adapting to the current normal…whatever normal now is?

My daily targets are severely reduced, in fact they are 50% of what I detailed in my TRADING PLAN goals and objectives.

What I am in fact saying is “THE NEW NORMAL” is what it is at the time you research and place your trade.

Normal is nothing…it’s all about adapting to what it is “NEW” at the time you place a trade.

As traders we cannot rely on anything for confirmation at the moment as so many parallels and correlations mean nothing.

I remember writing not so long ago that the first thing I did in the morning was check “The Holy Trinity” (Gold, Copper and WTi), I still do but I no longer rely on them the way I used to as I am scalping or at best my longer term trades that I still try to let run are really based of the “Pullback Strategy”. Yes, I look at Fibonacci levels, and yes I look at pivot points to attempt to gain the best entry prices and yes, I do look at 100 and 200 day SMA’s. But they are less and less of real importance in comparison to six months ago.

The only things to add, that I consider the critical success factors to present day Forex trading survival…

TRADE SMALLER POSITION SIZES.

WIDEN YOUR STOPS TO ALLOW FOR THE CHOP FEST AND THE INCREASED VOLATILITY.

USE MULTIPLE MICRO LOTS TO GIVE YOU MORE FLEXIBILITY.

USE YOUR MONEY AND ACCOUNT MANAGEMENT PRINCIPLES TO ENSURE THAT YOUR ACCOUNT DOES NOT GET NEGATED.

DO NOT GET HUNG UP ON THE USD MAJORS. LOOK AT THE COMMODITY CROSSES. THEY OFFER AN OPTION THAT CAN KEEP YOU INVOLVED WITH TRENDS SUCH AS THEY ARE BUT KEEP YOU OUT OF THE USD.

CONSIDER THE NORDIC CURRENCIES AS AN OPTION, ALTHOUGH EUROZONE LINKED THEY ARE STILL TO A LARGE EXTENT DIRECTIONAL.

PLAN YOUR TRADES AND TRADE YOUR TRADING PLAN.

IF IN DOUBT, DO NOT COMMIT TO THE TRADE, STAY IN $$$. SOMETIMES THE BEST TRADES ARE THE ONES YOU WALK AWAY FROM.

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<strong> </strong><strong> </strong>

<strong>4. TRADER TOPICS:</strong>
<p style="text-align: center;"><strong>TRADING WITH A FLEXIBLE MINDSET
PARTS 1 and 2</strong></p>
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This piece that I am including in this weeks blog, basically took on a life of its own as I was working on it. My whole idea of being flexible was initially based around avoiding getting caught up too much with the descriptions of bull or bear, bullish or bearish. As I approached the end, I found myself adding a section referring to todays trading specifics.

I therefore decided to split the article into Parts 1 and Parts 2. I hope it makes sense.

<span style="text-decoration: underline;"><strong>PART 1 (BULL or BEAR):</strong></span>

Trading with a flexible mindset is a critical skill that all traders must learn. While this may seem elementary, consider just how often you hear the media label a trader, a firm or even themselves as a “bull or a “bear”. From my perspective this makes little sense within the Forex market.

Let’s say that you considered yourself to be a “bull” for the USD, or in other words you think that the USD will rise in the future. To me it’s a vague definition. Does it mean that you think that the USD will rise forever? Will it just be for a week? Will it only go up if the pair you are looking at first drops one hundred pips to a line of support? Without more details in one’s opinion, stating that someone is “bullish” doesn’t give away much information.

However, I sometimes fall into this trap myself, I will say occasionally that I am bullish for a given currency pair without further explanation. This is in my opinion an overstatement and vague. The reason is that I have formed an opinion before I analyze the facts.

e.g.

I am a Premier League Soccer/ Football fan and my team is Everton. Because, I always want Everton to win so badly (similar to someone holding a long position wanting the pair to rise), I find myself irrationally thinking that Everton are better than they actually are. So even though I know my bias changes my opinion, I simply cannot help myself.

However in trading there is a lot more on the line. If you have a general opinion before you actually analyze the current situation, then you are viewing the information without the benefit of a rational mindset. This may seem quite strange to hear, but it is true.

Do not misunderstand me, if you have a current opinion that a currency pair is likely to behave in a certain way due to your analysis, that is fine. But many traders form open-ended opinions on currency pairs and then try to find analysis that fits around that opinion. Let’s say you consider yourself to be generally bullish on the EUR/USD. The reason for this is that you think the Euro “looks better” than the dollar.

Basically, I am saying that if you are going to trade successfully you must evaluate and review facts yourself and be flexible at all times. Researching and analyzing your trade and picking the entry based upon trading strategy and assessing the risks involved are all vitally important aspects of trading.

In my opinion, if you label yourself as a bull or a bear you take away the flexibility of trading based on the facts that are in front of you at any given time, unless those facts support your decision to be “bullish” or “bearish” a particular pair.

I like to think that I am NOT a trader but a RISK ASSESSEMENT manager. I look at the RISKS and check them before I place the trade. It is a discipline worth having, and whilst it might sound like overkill, it’s better to be over-cautious than flippant. Once your trading account is dry…that's it.

Its all common sense really, trading currencies is not rocket science, it is about being able to assemble thoughts, analyze charts and implement a set of strategies and work within a TRADING PLAN with good MONEY and RISK MANAGEMENT disciplines.<strong> </strong>

<span style="text-decoration: underline;"><strong>PART 2 (SOME THOUGHTS ON TRADING TO-DAY):</strong></span>

A FEW TIPS FOR THIS MARKET

TRADING WITH A FLEXIBLE MINDSET has taken on a whole new meaning of late and I want to elaborate with a few paragraphs.

The Current Forex market is a volatile Chop Fest where even the most experienced traders are being caught out on the wrong sides of trades and traders’ accounts are being squeezed.

Being flexible in your approach is vital to trading success today.
VARIABLE LOT SIZES:

When I first started trading I traded standard lot sizes only. The broker said this is the way to go. What utter bulls**t, I left that broker and found a more real world one that I am still with today 7 years later. I moved from a standard lot account to a mini lot account. If I want to trade a standard lot I just trade 10 mini lots…easy.

Now I have five brokers; two are mini lot only and the other three are micro, mini and standard lots. This now gives me the ultimate flexibility of trade sizes. I can add to or remove partial trade sizes whenever I want. This gives me 100% flexibility.

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POSITION SIZES AND WIDER STOPS:

Today, I would trade with smaller position sizes. Use the advantage of micro, mini and standard lot combinations but trade smaller in this period of volatility. Secondly, because of the market volatility place your stops a little wider away, but remain within your TRADE PLAN guidelines.

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DO NOT BE AFRAID TO TAKE LOSSES:

This market sucks!

Do not allow trades to get away from you. Do not be afraid to bank losses. Losses are a part of trading everyone has them.

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IF THE MARKET CHANGES BANK THE CASH:

In today’s volatility, if you are in profit and you see your profits start to erode, start to be aggressive in removing part of your position size and moving stops to break even.

Move stops to break even to protect yourself quicker than maybe you used to. Take profits off the table. Remember, it’s better to bank some $$$ than nothing at all.

There are no prizes for “woulda coulda shoulda”. Right now as traders we have to be lean, quick and efficient.

Again, it’s all about applying common sense.

TRADING WITH A FLEXIBLE MINDSET covers all aspects of your trading. It is essential to a trader’s success.

<strong> </strong><strong> </strong>

<strong>5. MY CURRENT LIVE TRADES:</strong>
<p style="text-align: center;"><strong>FLASH TRADES:</strong></p>
<p style="text-align: left;">I am in several positions and I am not 100% happy with them all but many positions are very small position sizes that I do not mind holding. I am maybe too optimistic that I will engineer my way out of these poorer trades but my RISK MANAGEMENT is still 100%.</p>
<p style="text-align: center;"><strong>FT69</strong>
<strong> USD/CAD</strong>
<strong>Long</strong>
<strong>Cost Average / Entry Level: 1.1061</strong>
<strong>Stop Loss: 1.0850</strong>
<strong>Limit / Target: 1.1600</strong>
<strong>Weekly Closing Price: 1.0972</strong>
<strong>Position: -89 pips</strong></p>
<p style="text-align: center;"><strong>FT73</strong>
<strong> USD/CHF</strong>
<strong>Long</strong>
<strong>Cost Average / Entry Level: 0.8937</strong>
<strong>Stop Loss: 0.8800</strong>
<strong>Limit / Target: 0.9250</strong>
<strong>Weekly Closing Price: 0.8778</strong>
<strong>Position: -159 pips </strong></p>
<p style="text-align: center;"><strong>FT77</strong>
<strong>EUR/USD</strong>
<strong>Short</strong>
<strong>Cost Average / Entry Level: 1.3744</strong>
<strong>Stop Loss: 1.3950</strong>
<strong>Limit / Target: 1.3450</strong>
<strong>Weekly Closing Price: 1.3873</strong>
<strong>Position: -129 pips</strong></p>
<p style="text-align: center;"><strong>FT107</strong>
<strong>NZD/USD</strong>
<strong>Short</strong>
<strong>Cost Average / Entry Level: 0.8533</strong>
<strong>Stop Loss: 0.8750</strong>
<strong>Limit / Target: 0.8400</strong>
<strong>Weekly Closing Price: 0.8655</strong>
<strong>Position: -122 pips</strong></p>
<p style="text-align: center;"><strong> </strong></p>
<p style="text-align: center;"><strong>RADAR TRADES:</strong></p>
<p style="text-align: center;"><strong>RT67</strong>
<strong> NZD/CAD</strong>
<strong> Short:</strong>
<strong> Entry / Cost Average: 0.9380</strong>
<strong> Stop Loss: 0.9520</strong>
<strong> Target / Limit: 0.8000</strong>
<strong>Weekly Closing Price: 0.9494</strong>
<strong>Position -114 pips</strong></p>
<p style="text-align: center;"><strong>FUNDAMENTAL TRADES:</strong></p>
<p style="text-align: center;"><strong>FUN14</strong>
<strong> GBP/NZD</strong>
<strong> (This trade is hedged from -150 pips)</strong>
<strong>Long</strong>
<strong>Cost Average: 1.9950</strong>
<strong>Stop Loss: 1.9000</strong>
<strong>Limit / Target: 2.2350</strong>
<strong>Weekly Closing Price: 1.9438</strong>
<strong>Position: - 512 pips</strong></p>
<p style="text-align: center;"><strong> </strong></p>
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<strong>6. TRADES THAT ARE ON MY RADAR:</strong>

Due to Ukraine / Russian tensions I am not looking to add any trades over this weekend. I will give my thoughts on Monday morning after the U.S. equity market has opened via THE DAILY FX POST.

Suffice to say, the movements in the Forex market are at the moment dysfunctional to say the least. I have enough risk on the table with my current live trades and I do not want to take on any additional risk.
<p style="text-align: center;">I put forward two trades last week on Twitter; EUR/CAD and GBP/CAD long. I am still bullish the Canadian $ and both of these trades are within my initial guidelines for entry. The EUR/CAD closed at 1.5221 and GBP/CAD at 1.8508. My original set-ups are below: -</p>
<p style="text-align: center;"><strong>EUR/CAD</strong>
<strong> Long at 1.5200</strong>
<strong> Stop Loss 1.4950</strong>
<strong>Target / Limit 1.5600</strong></p>
<p style="text-align: center;"><strong> GBP/CAD</strong>
<strong>Long at 1.8520</strong>
<strong>Stop Loss 1.8350</strong>
<strong>Target / Limit 1.8950</strong></p>
I would wait until we set how the weekend plays out with the tensions around the globe and the politician sound-bytes that will no doubt be aired in Sunday’s press and on TV.

As I wrote a few weeks ago, and I still think it now, the commodity crosses offer some of the best trading opportunities moving forward but right now I believe it is EXTREME CAUTION time.

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<strong> </strong>

<strong>7. LOOKING FORWARD…THE KEY SUPPORT &amp; RESISTANCE LEVELS WITH THE USD MAJORS:</strong>

<strong>EUR/USD: Closing Price 1.3873.</strong> Despite all the rhetoric and verbal intervention by the ECB we remain in the range that has contained the EUR/USD for seems like an eternity. This Thursday we have the Draghi roadshow, with an ECB interest rate decision and press conference. Something in my brain tells me that despite long lines of unemployed people in many Eurozone countries and DEFLATION worries all over the Eurozone, the ECB will not act…they will simply kick another can down the road. I want to be wrong, but the ECB history on economic matters is 100% reactive, 0% proactive.
The range that we are being held captive in is 1.3750 to 1.3950.

<strong>GBP/USD: Closing Price 1.6868</strong>. This pair looks like a 1.7000 test is on the cards. Yesterday, after the blowout NFP data it fell to support at 1.6830 and bounced. We are in a tight range with this pair 1.6830 to 1.6920.Having spoken with many of you (PREMIUM SERVICE subscribers) you like me are 100% engaged on the shenanigans of trading the cable. If you do not want to trade the GBP/USD trade the EUR/GBP instead.

<strong>AUD/USD: Closing Price 0.9276</strong>. Big AUD news on the horizon this week, several market moving events. We closed last week pretty much unchanged from the previous week. I am now more bearish the AUD/USD, but I want to hear and read what the RBA release to the markets this week before getting myself committed one way or another, I want review MY PROBABILITIES!. The range is 0.9200 to 0.9315.

<strong>NZD/USD: Closing Price 0.8655</strong>. I hate the Kiwi currency. Of all the currencies that I look at each day it is the one most affected by cross-rates. The AUD/NZD is repositioning itself lower and as a result the AUD drops and the NZD strengthens. My only happy thought on the NZD/USD is that it is well regarded as the most over-extended, over-valued currency in the Forex market and as such it is setting itself up for a major fall from these lofty heights. This despite what RBNZ Wheeler might say. Remember Wheeler says something with one hand and says the opposite with the other. He kind of wants his cake and to eat it at the same time. The range that I am now considering is wider than the initial range that has contained the pair recently. I think that this pair is the classic false breakout / breakdown currency pair. My range is 0.8500 to 0.8750.

<strong>USD/CAD: Closing Price 1.0972.</strong> Talk about a currency pair that cannot make its mind up whether it is moving lower or higher. The good thing is for people like myself who are long is that it has held up fairly well. Major trend line support is at 1.0850. This is a multi year trend line and as long as we are above this I am bullish. The range is 1.0940 to 1.1060.

<strong>USD/CHF: Closing Price 0.8778</strong>. After NFP yesterday we rose 40 pips and gave back 55 pips. I am a nervous long with this pair, but my position size is small. Should tensions spill in Ukraine / Russia this is the European safe haven. I am concerned that we may fall to 0.8500 before getting a firm footing to bounce. We are now below 0.8800 once again. The next line in the sand is support at 0.8695. I will not get excited as a long side trader of this pair until we break through 0.8870.<strong> </strong>

<strong>USD/JPY: Closing Price 102.18. </strong>The closing price unchanged from last weeks’ close, this pair to me looks like its about to fall off a cliff. Support is strong at 102.00 below there I suspect stops are between 101.80 and 101.90. If they get taken out in a huge fall, the next big support is 101.00. Resistance is good at 102.80.

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<strong> </strong><strong> </strong>

<strong>8. MAJOR FOREX NEWS THIS WEEK THAT INTERESTS ME:</strong>

SUNDAY: CNY – HSBC Manufacturing PMi.

MONDAY: N/A.

TUESDAY: AUD – RBA Rate Statement, Cash Rate and Annual Budget
TUESDAY: CAD – Trade balance and IVEY PMi.
TUESDAY: NZD - Employment Change and Employment Rate.
TUESDAY: AUD – Retail Sales.

WEDNESDAY: USD – Janet Yellen Testimony.
WEDNESDAY: AUD – Employment Change and Unemployment Rate.

THURSDAY: GBP – BOE Bank Rate.
THURSDAY: EUR – Interest Rate and Press Conference.
THURSDAY: AUD – RBA Monetary Policy Statement.
THURSDAY: CNY – CPi.

FRIDAY: CAD: - Employment Change and Unemployment Rate.

<strong> </strong><strong> </strong>

<strong>9. FINAL THOUGHTS:</strong>

Despite a very volatile move last Friday following Non Farm Payrolls release in the U.S. we are still range bound with most of the Forex market.

There are some high profile news events this week that should get the markets moving along. We are still sitting in ranges at the moment in many different markets so unless the high profile news moves us, we could be no better off than we are right now. So this week you have to be ready for false breakouts and false breakdowns. There are so many inflection points close by in equities, bonds and the Forex markets, it is really no wonder that we have been in a chop fest for quite sometime.

The only thoughts that I can add are, that it is the same for everyone. Everyone looks at the same charts as we do day after day and I have no doubt that they are equally frustrated by the ranges that we are currently stuck within. The key is to be lighter on position sizes and ready to move. With this in mind we have to watch our lead indicators: -
<p style="text-align: center;"><strong>GOLD</strong></p>
<p style="text-align: center;"><strong>COPPER</strong></p>
<p style="text-align: center;"><strong>WTi Crude Oil</strong></p>
<p style="text-align: center;"><strong>U.S. 10-Year Treasury</strong></p>
<p style="text-align: center;"><strong>S&amp;P</strong></p>
<p style="text-align: center;"><strong>AUD/USD</strong></p>
<p style="text-align: center;"><strong>USD/CAD</strong></p>
<p style="text-align: center;"><strong>USD/SEK</strong></p>
<p style="text-align: center;"><strong>And</strong></p>
<p style="text-align: center;"><strong>USD/JPY with 6J index</strong></p>
<p style="text-align: center;"><strong> </strong></p>
By watching these we will get a heads up, if they all follow suit and correlate the way they should we will get a move we want. If they fail to correlate this is what can cause a false breakout or false breakdown.

Do not be complacent in any aspect of your trading at this time. You should only trade within your TRADING PLAN guidelines as per the examples I have written about and posted to the PREMIUM SERVICE trading essentials section of the website. You should at this time, trade smaller position sizes with stops in place that are within the guidelines of your TRADING PLAN. If my stops are too wide for you, reduce your position sizes to stay within your TRADING PLAN guidelines.

Take care and good luck. Be careful with position sizes.

Scott Pickering
The Pip Accumulator
Saturday May 3rd 2014

EMAIL / FOLLOW ME AT:
premiumservice@weeklyfxdrivethru.com
Twitter: @pipaccumulator
Twitter: @ThePremService
Google+/scottpickering

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