25.01.2014
<p style="text-align: left;" align="center"><b><span style="text-decoration: underline;">1. INTRODUCTION:</span></b></p>
Last week was a very interesting and very profitable week trading in the forex market.

I could never have predicted the volatility. The Bank of Canada, China PMi and Eurozone PMi all had a part to play in the volatility. There were some mega moves, that I wouldn’t chase and frankly at the time I did not believe they were true moves.

Great money was made on big moves with the USD/CAD, EUR/CAD and GBP/CAD on Wednesday. NZD/CAD on Thursday/Friday and then on Friday BOE Carney spoke in London and GBP/CAD gave some profits back and EUR/CAD netted some profits to kind of hedge the “cables” losses.

Are we now two or three days into the equity markets starting a pullback / correction? I make a few brief comments on this subject later in the blog.<b></b>

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<b><span style="text-decoration: underline;">2. RADAR, FLASH and FUNDAMENTAL TRADES - TRADING SUMMARY:</span></b>
<p align="center"><b><span style="text-decoration: underline;">JANUARY 2014 and YEAR to date:</span></b></p>
Below I show the up to date excel spreadsheets for my various trading styles.

These trade set-ups are “Tweeted” directly to PREMIUM SERVICE subscribers to follow if they wish.

This week if you had traded the same mixture of Standard and Mini and Micro lot trades that I had, a three-year subscription would have been covered in three days! Not everyday can be the same but the potential is definitely there.

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<p align="center"><b><span style="text-decoration: underline;"><a href="https://weeklyfxdrivethru.com/wp-content/uploads/2014/01/RADAR-TRADES-1-25.01.2014.png"><img class="aligncenter size-full wp-image-3144" alt="RADAR TRADES 1 25.01.2014" src="https://weeklyfxdrivethru.com/wp-content/uploads/2014/01/RADAR-TRADES-1-25.01.2014.png" width="536" height="469" /></a></span></b></p>
<p align="center"><b><span style="text-decoration: underline;"> </span></b></p>
<p style="text-align: center;"><b><span style="text-decoration: underline;"><a href="https://weeklyfxdrivethru.com/wp-content/uploads/2014/01/RADAR-TRADES-2-25.01.2014.png"><img class="aligncenter size-full wp-image-3145" alt="RADAR TRADES 2 25.01.2014" src="https://weeklyfxdrivethru.com/wp-content/uploads/2014/01/RADAR-TRADES-2-25.01.2014.png" width="526" height="471" /></a>
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<p align="center"><b><span style="text-decoration: underline;">PROFITS FROM SINGLE LOT COMPLETED RADAR TRADES:</span></b></p>
<p style="text-align: center;"> 1 x MICRO-LOT:
18 trades at $0.10 cents each = $1.80 cents risk for a $2.80 loss.</p>
<p align="center">1 x MINI-LOT:
18 trades at $1.00 each = $18.00 risk for a $28.00 loss.</p>
<p align="center"><span style="line-height: 1.5em;">1 x STANDARD LOT:
</span><span style="line-height: 1.5em;">18 trades at $10.00 each = $180.00 risk for a $280.00 loss.</span></p>
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<p style="text-align: center;"> <a href="https://weeklyfxdrivethru.com/wp-content/uploads/2014/01/FLASH-TRADES-25.01.2014.png"><img class="aligncenter size-full wp-image-3146" alt="FLASH TRADES 25.01.2014" src="https://weeklyfxdrivethru.com/wp-content/uploads/2014/01/FLASH-TRADES-25.01.2014.png" width="494" height="486" /></a></p>
<p align="center"><b><span style="text-decoration: underline;">PROFITS FROM SINGLE LOT COMPLETED FLASH TRADES:</span></b></p>
<p style="text-align: center;"> 1 x MICRO-LOT:
17 trades at $0.10 cents each = $1.70 cents risk for a $60.10 reward.

1 x MINI-LOT:
17 trades at $1.00 each = $17.00 risk for a $601.00 reward

1 x STANDARD LOT:
17 trades at $10.00 each = $170.00 risk for a $6,010.00 reward</p>
<p style="text-align: center;" align="center"><b><span style="text-decoration: underline;"> </span></b></p>
<p align="center"><b><span style="text-decoration: underline;">COMBINED FLASH AND RADAR TRADES PROFIT PERFORMANCE</span></b></p>
<p align="center"><b><span style="text-decoration: underline;">JANUARY 2014…SO FAR:</span></b></p>
<p align="center">TRADING MICRO-LOTS:
35 trades at $0.10 cents each = $3.50 risk for a $57.30 reward.</p>
<p align="center">TRADING MINI-LOTS:
35 trades at $1.00 each = $35.00 risk for a $573.00 reward.</p>
<p align="center">TRADING STANDARD LOTS:
35 trades at $10.00 each = $350.00 risk for a $5,730.00 reward.</p>
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 remember, trades are of different sizes, added to, profits are taken along the way the cost average moves and all trades are of different lot styles. I trade, micro lots, mini lots and standard lots across my brokers.

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<b><span style="text-decoration: underline;">3. DETAILS OF THE PREMIUM SERVICE:</span></b>

<b></b>To confirm, the PREMIUM SERVICE has now been launched and you are able to login and register for the PREMIUM SERVICE subscriber service on the welcome page of the WEEKLY FX DRIVE-THRU at www.thepipaccumulator.com

You will see the following drop down headings at the top of the welcome page: -

PREMIUM SERVICE

SIGN-UP

These contain all the information about the PREMIUM SERVICE and subscribing is easy and straightforward.

The “Log-in” area is above my avatar to the right of the same welcome page. Once you are logged-in, it is a very straightforward procedure to access and navigate the webpages.

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<b><span style="text-decoration: underline;">4. THE VIEW FROM MY TRADING DESK:</span></b><b> </b>
<p align="center"><b>ARE EQUITY MARKETS ABOUT TO GIVE US THE LONG AWAITED CORRECTION?</b></p>
In many of the recent blogs I have talked about the market dis-connect on several occasions. I have referred several times in the past to my lead indicators GOLD, OIL, COPPER, the U.S.10 year, AUD/USD and USD/CAD and how their reaction helps me look forward.

The markets dis-connect has been more noticable ever since the FED started “Tapering”.  With an FOMC statement due this coming week, if further reductions in purchases by the Fed are announced, the sell-off that is seen right now as a small pullback could turn into a market correction.

If it turns out to be a market correction, how much a correction could be seen?

I think a 10% to 15% would be the maximum but maybe only 5%. As you can see I do not know, I am guessing. Nobody knows the effect of tapering on the market, because it has never been done before.

The thoughts of a Dow Jones pullback to 14,500, would certainly market a shift in sentiment but I fear that any correction may not be that deep. We have seen about a 3.5% drop in the Dow Jones in the past 5 days.

The S&amp;P has dropped about a 2.6% drop in 5 days. The S&amp;P at 1530.00 after a correction would offer a great buying opportunity and maybe that is where we need to go to flush out all the pessimists who have advocating a pullback / correction for sometime.

The recent pullbacks allegedly started on the back of a mixture of China data and good Eurozone PMi data, fuelled by the additional FED tapering.

I think the AUD has been telling us this was going to happen for sometime. Look at the way it has been trading this past month or so. In addition, the recent rise in the USD/CAD was not just a spike; it was a confirmed break above 1.1000. Gold has been on the precipice of a breakdown for sometime and Crude Oil has been falling

All this leads to USD strength and the fact that eventually equities would join the party so to speak. This move lower has been a long time coming.

The one thing that I do know is that now we are here, if the correction in equities continues, you must watch the AUD/USD, AUD/JPY very closely along with the USD/CAD for continuing clues.

I have several key trades inside the PREMIUM SERVICE subscriber section related to this discussed equity weakness plus more associated with this issue ready “to go” after the FOMC later this week.

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<b><span style="text-decoration: underline;">5. LOOKING FORWARD…THE KEY SUPPORT &amp; RESISTANCE LEVELS WITH THE USD MAJORS:</span></b>

<b>EUR/USD: Closing Price 1.3674.</b>  We ended the week close to previous resistance now current support at 1.3670. A break below here sets us back up for another run at 1.3550. Draghi speaking in Davos on Friday spoke about the Eurozone improvements in the past 12 months. Yeah right…go tell that to record millions in unemployment lines. There is another Eurozone crisis on the horizon.  If Merkel and Draghi just got their heads out of their butts they would see the massive dis-connect in the single currency area. If 1.3670 holds we may see 1.3750 again. But remember the FOMC and tapering on Wednesday.

<b>GBP/USD: Closing Price 1.6475.   </b>Carney showed his true colours on the state of the UK economy. Previous goal posts now removed and new rules are being set. No more forward guidance, back to the “Merve the Swerve” approach (Mervyn King, Carney’s predecessor at the BOE. The cable was demolished on Friday morning on the back of his comments. I lost money on the GBP/CAD at the same time…so bloody annoying. The range is 1.6460 to 1.6550.

<b>AUD/USD: Closing Price 0.8679</b>.  About 100 pips lower in the week. It will not stop here. RBA Stevens sees 0.8500 as about right. Other RBA quotes are seeking 0.8000. An IMF report (I think, but not 100% certain) sees fair value at 0.6500. Dream on…that's a trade. I would call that an ARMAGEDDON TRADE. The range is 0.8650 to 0.8750.

<b>NZD/USD: Closing Price 0.8212</b>.  This pair is a little lower in the week but not too much of a move. The AUD/NZD cross-rate is playing havoc with the AUD and the NZD.  Support at 0.8200 is critical now and resistance is till good at 0.8340.

<b>USD/CAD: Closing Price 1.1086.  </b>We are still in breakout territory and I want to buy this pair again. Just not at these elevated levels, but pullbacks did not come back far enough for me, too picky I know. 1.1000 offers great support and resistance is good at 1.1125.

<b>USD/CHF: Closing Price 0.8936</b>.  We closed yesterday on key lows around 0.8930. If this support gives way I can see 0.8850 once again. On the upside 0.9040 needs to be taken to set this pair bullish once again.

<b>USD/JPY: Closing Price 102.32. </b> For this pair we saw a 200-pip drop in the week. Quite a move, and I think that there is further downside in the pair. As I said last week there are calls for 98.00. The range at the moment that I see is pretty straightforward and with more downside pressure in the pair possibly in Asia on Sunday night at next weeks open. The range is 102.00 to 102.80.

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<b><span style="text-decoration: underline;"> </span></b>

<b><span style="text-decoration: underline;">6. MAJOR FOREX NEWS THIS WEEK THAT INTERESTS ME:</span></b>

SUNDAY: N/A

MONDAY: N/A.

TUESDAY: N/A

WEDNESDAY: GBP – BOE Carney speaks.
WEDNESDAY: USD – FOMC Statement.
WEDNESDAY: NZD – Cash Rate and RBNZ Rate Statement.

THURSDAY: NZD – RBNZ Wheeler speaks.
THURSDAY: AUD - PPi

FRIDAY: CAD – GDP.

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<b><span style="text-decoration: underline;">7. FINAL THOUGHTS:</span></b>

I am expecting fireworks on Wednesday this week but for the rest of the week I am not expecting massive volatility. Having said that get ready for volatility!

I am expecting some consolidation early next week. We have stretched the boundaries a little with some currencies and we need to work off oversold / over-bought conditions. But at the same time volatility may continue given the rising importance of the FOMC statement regarding tapering on Wednesday.

Always, always remember. There is market everyday. You do not need to trade everyday to make your financial goals. Over the coming weeks I will visit as many topics on trading tips as possible to hopefully help and aid better trading success.

Good luck and trade within your TRADE PLAN guidelines and most importantly use MONEY MANGEMENT SKILLS to control your risks.

Scott Pickering
The Pip Accumulator
Saturday January 25<sup>th</sup> 2014

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