Fixed Odds Trading Strategy

Retail sales and CPI data gives the market what it had been looking for!

The core number for the CPI data was reasonably strong which helps the U.S. fight against inflation while the Retail Sales saw a 0.5% rise above forecast.

All this helped my cause for a profit on my S&P trade, whereas beforehand my (target account) trade looked in as much jeopardy as Paul Burrell’s morals.

My target account now sits at just below 25k and with another trade opened late on Friday, on the £/$ market I stand to blast this pivotal level right down if the range bound market continues its activities in normal fashion!

The week kicks off with top tier data on both sides of the Pond.

Later today, in the states (what I am looking for) there is the release of TIC net long term and total flows – This could impact the $ and of course the Dow and S&P.

The Treasury International Capital statement is a massive part of the U.S. capital account and gives valuable insight into foreign demand for U.S. investments and their currency.

Tomorrow will see the Housing starts and PPI numbers, then on Wednesday for the UK, is the release of the minutes from the last Monetary Policy committee meeting

Rest assured, these minutes will be scoured for hints of future policy directions. Then on Thursday you will see UK retail sales and US unemployment numbers.

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I want a flat to maybe lower week, but not a major rally please.

Let’s hope that this week, the UK’s CPI figure is as promising, following talk that the inflation rate could be double than previously expected.

This of course may nudge the BOE’s urge to raise rates into actual activation.

After Friday’s late rally, or should I say just before the action occurred I placed two range trades for clients, (one of which again on the S&P) but the leverage weighted more to the downside!

Needless to say, I do not want to see Friday’s late strength trickle over into Monday or Tuesday’s session.

Looking at the charts this early Monday morning, the futures are slightly higher, but Fair value prices show the market may even open lower.

I think that 1375 is big resistance for the S&P, along with 12700 for the Dow – Trust me, 12700 will not be broken any time soon, if at all this Summer…

I am also looking at Large range trades on the European bourses, but with more downside bias, specifically on the FTSE due to UK inflation fears and a possible bad gauge on Tuesday’s CPI number.

For a 25 day trade, I am looking toward around a 700-point FTSE range. With only around 250 points to the upside and the rest weighted lower.

My main trade this week, is obviously my £/$ which I will be looking at closely each day throughout this week.

Have a good one yourself – Until next week

Happy Trading

Matt $haw
www.fixedoddssuccess.com

P.S. at: www.fixedoddssuccess.com on the left-hand side of page isthe Exclusive beginners course. It is only available for the next few hours before it is taken down! Buy It Now!