The trading plan SAVED THE DAY!

I was getting a little worried...I saw the weakness in the S+P and felt that it looked weak, that it would only retrace 38% and then go back down the other way...

BUT we had the final 4H bar in the GBP/USD acting very strongly...looking like it would close above 1.64935...thus becoming a Trader Outlook trade...and now we had a built in contrary trade to what I thought would happen in the last paragraph.

That trade would have meant a weak Dollar, which equity markets like. I may have felt compelled to make that trade because Trader Outlook is so good at these intermediate trades.

BUT... here's what happened. The closing bar's of the S+P (daily) and GBP/USD (4H) both fizzled out.

Clicking on the charts give you clearer views):

AND

Notice the long upper wicks on both final bars. On the GBP/USD, we closed below Trader Outlook's signal entry point, and on the S+P, we saw too many offers at prices above 38% retracement level. To the novice, getting in early to the trade may have been tempting....I mean it was looking awful good (at one point it was at 1.6534.) We had a target point of 1.6615 and someone may not want to have missed it and jumped right in...

"I'm gonna be rich."

But, you see, the trading plan worked. I didn't enter because I didn't veer from the plan (no trade until the 4H bar is officially closed.) Now, obviously, if the market has another 200 point up day on Monday, this will be all for naught!

(Don't see that happening...)

Possible interesting development

As some of you know, we have opened up a separate account for Trader Outlook trades. I want to compare how his intermediate trades work (which have been great so far) so the only trades that will be made there will be the ones his traders make.

The other trades that I make are in different accounts because I am allowing for a much wider use of other techniques...

Our most recent intraday high on the S+P was 956.21 reached on June 11th.

At one point we had a 38% retracement from the subsequent low of 903.76. But if we close here, we could be in trouble... However, we also have a trade recommendation from Trader Outlook to go long GBP/USD if we get a close above 1.6493 on the 4H, which is contrary to my analysis.

38% retracement on the S+P?

It will be interesting to watch how equities close on the daily chart. I am, and have been bearish here...if we stop at 38%, that could be more evidence of further erosion next week. (Clicking on the chart gives you a clearer view):

The outcome here will have significant connections to the trades we are still watching.

Trade Limbo!

In case you were watching...NONE of the trades from the last post went off today. To me this is the way to trade. Yes, I'll scalp occasionally, but trading with A PLAN is so much more comforting...much less stress, and it avoids the trap of trading too much just to be part of the action.

I am learning about Bob Iaccino's Forex strategies...and it has definitely complimented what I have been doing already. You can try it $7 for seven days...that's what I did...and thankfully, it was a good decision.

New trades I am watching

We are watching 4 trades right now...none have been made yet and depend on price:

1. EUR/GBP: Long if we get a close on the 4H above 0.8573

2. GBP/USD: Short if we get a close on the 4H below 1.6208

3. AUD/USD: Short if we get a close on the 4H below 0.7826

4. USD/CAD: Short if we get a close on the 4H below 1.12206

The thing I like to do here is analyze these from an independent indicator. Market Club is excellent for being a checks and balances indicator. I will use this for these trades.

Did anybody see the clever post-production work CNBC did to the taped interview with Obama?

Let's just put it this way...if you're an insect, AIG, anybody who gets in his way... LOOK OUT! This is teriffic. (I am still searching for the animated version with the corporate logos flying around him.)

Account updates for all accounts

My main Forex account is up about 72% since the beginning of January. I sold my Gold in the 960's and repurchased it at around 951 and it is in the new account at the bottom.

My intermediate Forex account, which is up 25% since January, including some new trades this month (Zip file.)

My options and equity account, which are titled in my children's names, so I can only recreate the trades.

Here are the account particulars:
--My Sprint trade (which I closed at around 13% profit)
--My Zion Bank trade. (26% profit)
--The Gold puts purchased to protect my long term gold position have expired with a $3000 loss.
--The Puts I bought (and sold) to protect my gold, the first time around. ($11,000 profit)
---My S+P puts which expired worthless with a loss of $3,100. I am considering buying them again. Obviously, I should have gone out to July or August.

AND Trader Outlook. Looking pretty ugly after some losses in the last couple of days, but it will start to turn around because of the trading system that Bob Iaccino uses.

Out of trade

Out of second half of trade with a $30 profit (total $300). I am now watching the US/Yen for a possible short...stay tuned.

Trade Update

Out of half US/CAD (+$270). Will wait on other half...moved S/Loss up to breakeven.

Lookout below......!

I have a feeling this is the beginning of what I have been calling for for a while now...A CORRECTION in equities...and so does Market Club. Watch this video, and I think you will agree.

Remember the converging resistance trendlines we discussed over a week ago? Now watch this.

MISC.

If we close below 927 on the 4 Hour Gold Chart...I am going to repurchase PUTS on it because a significant trendline will have been broken.

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10:25 a.m.

Continuing Trade Analysis

9:56