31st December 07 News Signal

Joined : 23 Dec 2007 Posts : 235 Location : Nigeria

Let's now talk about Monday, last day of 2007 year.

1. Monday, December 31st, 2007 (10:00 a.m. New York Time) USA
On Monday we will have only one report that I feel is worthy watching and possibly trading although I am very skeptical about this. It is U.S. Existing Home Sales at 10 a.m. New York time. Usually we use a trigger of 0.2. I am a little bit worried because this is a New Year Eve, and a lot of speculations about how market is going to end this year so this may dominate the price action. However, it still can be tradable but I will be trading only a half of what I would normally trade. I prefer to trade on USD/JPY so if it comes out at 5.2% or higher, it would be a buy signal on USD/JPY, good for 30 pips or more in the first hour of the report. If it comes out at 4.8% or lower, it would be a sell signal on USD/JPY, good for 30 pips or more in the first hour of the report. As I said, because this is the last day of 2007 year, it can be a risky report to trade so if you want to skip it, I will not blame you. One more thing: if you see a definite trend right before the news release, don't trade against it - take another pair to trade. In case you want to trade pairs such as EUR/USD or GBP/USD, don't forget to switch triggers so "buy" will be "sell" and "sell" will be "buy" as my trigger is provided for USD/JPY.

That would be all for this year.
Courtesy Sir Pipsalot forexbastards.com