Posted by: Babu Suresh | May 23, 2009

GBPJPY-23-05-09

GBPJPY M30–ChartsGBPJPY_M30-230509 

Hello Friends,

21st of May 09 was one of the best days in forex I relished along with my followers across the globe and they went home with clean 500 pips, made in 2 straight trades. The previous occasion that I really enjoyed was, when one of my big clients, on my recommendation went long on USD/JPY in Jan.09 at 89 and closed the position at 98. https://sureba67.wordpress.com/2009/02/26/forex-usdjpy-26th-feb09/

Sequence of events on 21st May, 09.

  • I posted my GBP/JPY analysis in my blog at 1 min. to 6am UTC
  • At the same time, gave sell call to my followers on GBP/JPY at 149.60, telling them to close the position at 148.50
  • I went to rest after London Market opening, my usual practice
  • I got an sms within an hour from one of my US clients, mentioning Pound was crashing across the board
  • By instinct, I checked Bloomberg what had triggered such a steep fall; to my great relief there was a fantastic news from the highly illustrious, infamous, infallible grating (I fondly call them) agency, S&P downgrading UK.
  • I checked with my SOLIMO, the last leg of the fall was with less strength and I knew for sure, it was just a reaction from the market and the response was yet to start and it was a real good shake up.
  • I told my guys to immediately go long on GBP/JPY & GBP/USD (I rarely break my own rules taking position on 2 pairs at the same time) and put profit take with 200 pips with 100 pips each as stop loss.
  • Although, my followers were quite sceptical of my move, cautioning me, I told them confidently, DON’T TRUST ME, TRUST THE MARKET – we have space to take chance.
  • I don’t need to narrate the rest.

GBPJPY H1–ChartsGBPJPY_H1-230509

To share with you, I love these grating agencies, esp. Moody’s, S&P and Fitch. In the last 3 years, the period these great guys were highly active in the market with their downgrading, upgrading drama, I helped good number of my stocks clients reap a lot. My strategy has always been simple. As soon as I get a news one of these terrific guys have upgraded a particular company which if we are long at that time, I tell my clients to immediately close their position and wait for a while. And in case, if a company has been downgraded, for I follow only front line stocks, I send instructions to my clients to keep their accounts free to go long on that stock. Even if you want, these guys won’t allow you to fail. I admire their timing – ALWAYS. lol

This is one of my simple trading strategies.

A classic recent eg. on Jan 1st 2009, S&P downgrading Reliance Industries, https://sureba67.wordpress.com/2009/01/01/1st-jan-09-trading-session/. I prepared myself for a grand action. We went long at 1150 and closed at 1550.

Refer: https://sureba67.wordpress.com/2009/02/13/13th-feb-09-nse-trading-session/

My present supports and resistances – supports 149.45, 148.84, 147.57 & resistances 151.14, 152.05

GBPJPY H4–ChartsGBPJPY_H4-230509

For any guidance mail me at tradewithsuresh@gmail.com

Skype: sureba67 & Yahoo: psb67

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