dRaWdOwN's Weekly Take on the ForEx

Discussion in 'Journals' started by DrawDown, Jun 24, 2006.

  1. This is my new journal recapping my views on what happened weekly in the ForEx market.

    You're invited to look at my journal but I don't recommend reading it.

    For those of you new to trading currencies, "ForEx" stands for Formidable Executions. A method of trading, traced back to Iraq, involving currencies and other types of money, coins and cash. Beef jerky is also sometimes seen floating around the open market.

    The main rule is, whoever has the most, wins the most.

    This week (18th - 24th) the big event was the yen falling against the USD - 220-pips (or, points, depending on which side of your monitor you're closest to).

    This tumble is seen in a chart as a spike UP because chart-makers never figured out how to make the yen look like it's falling on a chart when it falls.

    The remedy for this is to sit upside down on your chair at your desk.

    If your monitors are plugged in somewhere else, then have someone roll your chair to where they are. Or, try to skate yourself along with your hands dragging on the floor.

    It is not advisable to sit upside down on your toilet, though, in case your monitors are kept in your bathroom.

    Water can run up your nose, that makes the charts look blurry.

    The reason for the fall in the price of yen was determined to be due to a man named Tosh Fukui, running through the streets of Japan in a panic Monday, screaming, "The sky is falling! The sky is falling!"

    It turns out Tosh is not related to the BoJ's Gov. Toshihiko Fukui, though numerous newspapers immediately quoted Tosh's exclamations.

    Asked later what all his commotion was about, he shook his head slowly and said he was misquoted, that he wasn't saying, "the sky," but rather, "Thaskiee," the name of his girlfriend who recently broke up with him and began dating a Sumo wrestler.

    "I just kinda snapped," admitted Tosh, "The pressure finally got to me, I guess. Sitting awake all night long, clicking though my old digital pictures of my girlfriend. Thinking about that big, fat wrestler sweating all over her all night... she was such a virtuous girl once...," Tosh added as his right eyelid twitched uncontrollably.

    "Once," being the keyword there.

  2. Now this is entertainment!

    excuse the interupption...I will go flog myself now...

    If you have a glass desk do not try the above, it can be dangerous
  3. Welcome Back Coinz.

    - Spydertrader
  4. Week of June 25th - 30th.

    Baron reminded me in a PM this morning at 4AM that I hadn't posted my weekly take on the ForEx.

    I wrote him back and reminded him I still haven't got paid for LAST week.

    I never heard back from him.

    This week the big event is the continuing saga of Tosh Fukui and his now semi-ex girlfriend, Thaskiee, pronouned in English as, "The Sky."

    After being beat-up by her new sumu wrestler boyfriend, Mahakishiki (see photo) Thaskiee called Tosh crying to him that Mahakishiki beat her "like a dog" because of Tosh's misquote in the news.

    It appears Mahakishiki was long yen at the time the newspapers published Tosh's story, costing him 41,000,000 yen.

    This week he beat her again because he lost another 41,000,000 yen - this time in his SHORT yen position (opened at 116.70), as the yen gained against the USD over 250-pts. Covering his yen short at 114.20 on his way to beat Thaskiee severely.

    In tears, Thaskiee said, "But, Mahakishiki, must you beat me for everything??"

    "Yes," replied Mahakishiki, with a grin.

    Tosh reticently explained to Thaskiee that once the ForEx market read about Tosh's misquote in the news, there was a rate retracement causing the 250-pt loss to Mahakishiki, that it "wasn't exactly" her fault.

    Thaskiee received that news with a smile of her own because apparently she was on the other side of Mahakishiki's trade, long 400,000,000 yen - profiting nicely as she closed her yen long at 114.25.

    Others attributed the massive 255-pip spke down in USD/JPY to the FOMC's announcement of a .25-pt interest rate hike.

    Ben Bernanke, the Federal Reserve head, went on record briefly this week, calling the general trading populous, "stupid," for their thinking he is going to cease raising rates, saying, "You're so STUPID, thinking I am not going to keep raising rates into the 10%, 15%, even 20% range! Me and my buddies make MONEY by higher rates!"

    It was difficult for analysts to interpret the Fed's subtle wording, most coming away with the overall feeling that Ben meant he was definitely at the end of rate hikes.

    Analyst Phil Williams, head of the interest rate hike analysis dept at UBS Bank, said, "Not only is the Fed going to stop raising rates, our position is that they will now start cutting rates back to 0%."


    <img src=http://elitetrader.com/vb/attachment.php?s=&postid=1119018

    6' 4" Rick “Thunder” Roufus (LT) takes a pounding from Mahakishiki (RT)
  5. Week of July 2nd - 8th.

    Baron finally got back to me.

    For those of you new to Elite Trader, Baron is the janitor here.

    He told me he has not gotten paid for a few weeks, either, for me not to worry, that I most likely will not be made happy by money, so to just forget about it.

    Here is his PM to me.

    From: Baron

    "DrawDown, just forget about the money. It most likely will not make you happy."


    This week saw the ForEx move 2-pts from 1.2777 to 1.2775 and back again.

    Some thought this was due to the North Koreans shooting missles, waiting for Bush's response.

    But, behind the scenes, that few insiders know, it was actually Mahakishiki who called up BoJ's Gov. Toshihiko Fukui, and told him he'd kill anyone in Japan who made a trade.

    Hence, with Japan out of action, the ForEx really didn't have anywhere to go but across.

    Mahakishiki left a message on Gov. Toshihiko Fukui's answering machine, saying, "If anyone in Japan makes a trade, I'll kill them."

    Gov. Toshihiko Fukui thought it might be in everyone's best interest to not trade so he sent an IPOD text message out to everyone in Japan over the age of 6.

    Fukui called Mahakishiki back and asked him if there was anything else he could do for him.

    Mahakishiki replied, "Yes, pray to me."

    Fukui and his financial cabinet promptly observed a 4-hour prayer period.

    Friday, US NFP numbers came out, sending the market (EUR/USD) quickly up 100-pts hitting a high of 1.2870.

    Mahakishiki, having taken out a short just prior to the announcement, immediately called Gov. Fukui again and told him to officially change the meaning of "NFP" in Japan (formerly "Non-Farm Payroll") to mean, "No Fancy Panzies," referring to Tosh Fukui, Thaskiee's partially ex-boyfriend.

    As soon as the "NFP" matter was taken care of, and the citizens of Japan understood that Mahakishiki was short, EUR/USD retraced back approximately 70-pips, closing the week's session at 1.2806.

  6. Week of July 9nd - 15th.

    The start of this week found the Bank of Japan's Governor Toshihiko Fukui's picture being snapped while in prayer to Mahakishiki.

    <img src=http://www.turkishdailynews.com.tr/photo/62006/m46767.jpg>
    Fukui in prayer

    Following which, Gov. Fukui received a surprise visit from Alan Greenspan, the ex-Fed Chairman.

    "And, to what do I owe such a gracious visit from you, kind Sir?" Fukui asked Greenspan.

    "Raise interest rates... or we'll bomb Japan. A message from President Bush," replied Greenspan.

    <img src=http://vietnamnet.vn/dataimages/original/images788690_alangreenspan-fukui.jpg>
    Fukui(RT), standing with Greenspan(LT), waves assuredly to President Bush via camera.

    Gov. Fukui quickly reminded Alan about Mahakishiki.

    Greenspan spat back that the USA has a secret weapon that is even mightier than Mahakishiki, a fellow by the name of Vlad, The Horse Eater.

    <img src=http://www.sme.sk/cdata/2441756/fakturant.jpg>
    Vlad, The Horse Eater.

    <img src=http://boblog.adrianocastro.net/wp-content/upload/abesta.jpg>
    Vlad, The Horse Eater (LT) pummels 6' 9" Freddie "Mad Cat" Williams(RT)

    Gov. Fukui promptly complied, raising the interest rate for the yen to .40 from near zero where's it's been for 6 years.

    The resulting rate hike sent the yen hurdling down against the USD 300-pts from 113.46 to 116.40.

    Mahakishiki immediately faxed Gov. Fukui a chart snapshot of USD/JPY indicating what is happening to his account capital (see chart pic) with the words, "YOU FUKui, TURN IT BACK!!!!"

    <img src=http://elitetrader.com/vb/attachment.php?s=&postid=1132394>

    Apparently, in an attempt to regain his lost money, Mahakishiki, the sumo wrestler, on a tip from Tosh Fukui, Thaskiee's partially ex-boyfriend, just prior to the spike opened a massive short trade at 113.50 with a Stop Loss set at 116.35.

    While looking to see if Mahakishiki was on his way to his office, Gov. Fukui received an abrupt phone call from Thaskiee.

    Thaskiee choking strangled words into the phone, "TERN IT BAAAAGGKK... GHEEEG'S GAHGT HIS FGHOOT EN MYG NICKGG!!!"

    <img src=http://newsimg.bbc.co.uk/media/images/40859000/jpg/_40859832_fukui_ap203a.jpg>
    Fukui watches warily for Mahakishiki

    Fukui slowly placed the receiver back onto the phone.

  7. Week of July 16th - 22nd.

    This week proved to be very unstable for global currency prices, EUR/USD leading the way with a vicious spike down followed by a dangerous retracement.

    Shown in the chart snapshot, a new low was hit (1.2458) with an amazing vertical reach back up to 1.2700 - 245-pips!

    Not a bad showing.

    The bi-directional volatility was mainly due to one of our members here on ET.

    A very big (we're talkin' BIG) placer by the name of Ivvy, announced the beginning of the week that he was going to open a MASSIVE EUR/USD Short trade.

    Those words rang through the ForEx kingdom, sending EUR/USD to 1.2458.

    About mid-week, Ivvy announced that he changed his mind, he'd remain flat (no open EUR/USD trades).

    Well, as you can imagine the panicked world breathed a sigh of relief and trading continued as unsual, elevating the pair back up to where it opened and a little past.

    Not much else happened anywhere in the world this week that effected the currency market.

    Just goes to show what panic and fear can do to the masses, and concurrently to exchange rates.

    Baron has still not got back to me regarding my pay for writing this column.

    I'm going to be sending a complaint to his superiors asking that his janitorial position be given to someone else - letting them know that I have some free time on my hands.

    Enough is enough.

    Baron, this is your last warning..


    <img src=http://elitetrader.com/vb/attachment.php?s=&postid=1140444>