http://www.yummyapple.com/02-21-2008.html

Let's first review what happened on Wednesday.

At 4:30 a.m. we had BOE Minutes. It was 8:1 vote with one vote to cut even more than expected so it was an unexpected sell signal on GBP/USD. I got in around 1.9479 but Diamonds people got in around 1.9470 and we saw down movement of almost 40 pips in first 10 minutes, and within 2 hours we saw about 70 pips move, eventually even much more.

At 8:30 a.m. we had a clear sell signal on GBP/USD or EUR/USD on U.S. CPI. All CPIs came out slightly higher. GBP/USD was traded around 1.9438 at the time of the announcement, and moved down about 76 pips. EUR/USD had stronger initial move of 43 pips but after that the move was muted. Overall, EUR/USD moved about 50 pips in a first half hour of the report. What was wonderful about this trade was that EUR/USD gave everyone enough time to enter at good price, and then it moved down very nicely.

The FOMC Minutes came out pretty much as expected.

Let's now talk about tomorrow.

1. Thursday, February 21st, 2008 (4:30 a.m. New York Time) UK
At 4:30 a.m. we will have U.K. Retail Sales m/m coming out. It is expected to come out at 0.25% (some people say 0.2% and some 0.3%). If it comes out at 0 or negative, I think it would be a good sell signal on GBP/USD or GBP/JPY, looking for 50 pips of a price action in a first hour of the report. If it comes out at 0.5% or more positive, I would recommend to buy GBP/USD or GBP/JPY. For more details how the price moved in the past, please watch the video.

2. Thursday, February 21st, 2008 (8:30 a.m. New York Time) USA
At 8:30 a.m. we will have U.S. Initial Jobless Claims. It is expected to come out at 349 K. If it comes out at 370K or more, sell USD/JPY and look for 30 to 35 pips move. If it comes out at 330K or lower, I would buy USD/JPY and look for 30 to 35 pips move.

That's all for tomorrow. As always, you can watch more detailed signal by clicking on the video link.


Thank you and good luck with your trades.

To Our Success!
-Sir Pipsalot