G’day Traders,

Yesterday was surprising. Firstly, for the positive news and secondly, for the lack of reaction. This just shows you what the markets can be like in Summer.

I posted some interesting articles on Twitter last night. A little bit of light reading, but as you may see at the Summit being able to know how to act on that information is the important thing.

On the housing data – that should have pushed the market higher as it conflicts with the really negative stuff from last week… or does it? For some reason house prices held up in US cities recently. It’s the low number of sales (not the price) that had the markets worried last week. Still it was good news and I thought the markets would lap it up.

Why didn’t they? I think some are waiting for the Fed to do something and so positive news doesn’t really help their cause. On the flip side the overwhelming majority of economic data shows the US economy is in big trouble and I don’t think the Fed can really do enough with what they have – they know it – they need to do things wisely. One article makes the case that even buying 1 Trillion worth of Treasuries wouldn’t do much.

Commodities are where the big moves were made and I made some tweets about this. When fundamentals come into it and the market reacts it could mean more chance of a trend, so I like to watch these markets. Corn, Sugar and Crude are three, with the other one Copper.

Copper is the market to watch to give you an idea on world growth, especially emerging markets. Therefore if markets fall and I am looking for a buying opportunity I will be watching Copper prices. Copper, if you check the weekly, is currently telling me that we are not going into a crash – so there is some conflicting information – which I love. It’s something no one is talking about – you are getting it here first.

The US S&P500 +0.41, Brazil 1.38, European top 500 flat and UK +0.45%. Nikkei is up and ASX up a lot in early trade.

ETFs – Have you thought about India or Turkey? Both have great internal demand. When I compare China and India – I think India has a much younger and growing population and is not as reliant on manufacturing overseas products.

Options – It is brilliant if you are trading Options right now if you also trade Forex and Commodities.

Today’s Top Tip

The 2010 Lifestyle Summit will be held from September 3-5 at Royal Pines Resort on the Gold Coast. It doesn’t matter whether you have limited time, a limited trading budget or just don’t know how to build momentum, the speakers and many of the attendees at The 2010 Lifestyle Summit have already slayed those very same dragons and will generously share their experiences with you.

Don’t miss out – visit http://www.lifestylesummit.com to register!

Information for Beginners – Quote from someone in the office “how can you stop trading after three losses – usually it’s just about to go and they miss out”.

Information for Intermediate – We are in September now – finally. So the odds are increasing for there to be some big moves.

Information for Advanced – My trigger point on the downside is 1035 on the ES. I am watching this and for a drop in Copper – two triggers to increase my exposure to downside profits.
Scott Goold

Head of Lifestyle R&D

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Trader Term of the Day – Temporal Method

A currency translation method under which the choice of exchange rate depends on the underlying method of valuation. Assets and liabilities valued at historical cost (market cost) are translated at the historical (current market) rate.