Manufactured Economies?

This exemplifies the “soft patch” that the global economy seems to be going through, though we must wonder if this situation is temporary or a sign of things to come.

PMI data from China, the Euro zone, the UK, and later this morning the all show that growth is slowing. Yet inflationary pressure due to a weak US dollar still has commodities prices near highs. With massive debt owed around the globe, it appears as though we are getting ready for global stagflation.

In Australia, GDP figures came in slightly lower than expected as a result of the flooding and this was a relief to the markets as the fear was that it was going to be much worse.

Today starts the first of three employment reports here in the US, with the ADP employment change figures today, initial jobless claims tomorrow, and lastly Non-Farm Payrolls on Friday.

So there is some risk aversion in the markets to start the day, led by lower stocks and commodities prices.

In the forex market:

Aussie (AUD): The Aussie is mostly higher despite the risk aversion as GDP figures came in showing a quarterly decline of 1.2%, just missing the expectation of 1.1%. This was seen as a positive by the market, which feared that it could be worse than expected. (Click chart to enlarge)

Kiwi (NZD): The Kiwi is mixed this morning as lower Chinese PMI figures highlight a slowing Chinese economy, and this affects the Kiwi as the Chinese import a lot from NZ.

Loonie (CAD): The Loonie is somewhat mixed today after yesterday’s BOC rate policy decision reported that they will “eventually” raise interest rates. This sent the Loonie higher yesterday and now the question is “when” and not “if”. (Click chart to enlarge)

Euro (EUR): The Euro is mixed today as slightly lower than expected PMI figures and the focus on the Greek debt crisis leave the market befuddled.

Pound (GBP): The Pound is lower across the board after the biggest miss in PMI data, reporting a figure of 52.1 vs. an expected 54.1. In addition, mortgage approvals were lower to 45.2K vs. an expected 47K showing signs of economic weakness.

Swissie (CHF): The Franc is higher across the board receiving the dual benefit of risk aversion and better than expected retail sales figures.

Dollar (USD): The Dollar is mostly lower as the ADP jobs report came in much worse than expected this morning posting a gain of 38K vs. an expected 175K. This will likely reduce the expectation of Friday’s NFP and despite the risk aversion in the markets, money flows are moving elsewhere.

Yen (JPY): The Yen is mostly higher on risk themes as the Japanese Prime Minister Kan faces a no-confidence vote over his handling of the crisis taking place in Japan. Political uncertainty is not good as Kan was seen as moving toward fiscal responsibility.

Wow, just a dismal employment change number here in the US has the markets spooked about what Friday’s NFP might be. With many areas of the economy weakening, the possibility of QE3 may be back on the table.

With the theater taking place in Washington DC over raising the debt ceiling, the inability of politicians to get us back on the path to financial responsibility will cause this situation to stagnate further.

Should Bernanke continue with the misguided belief that further Fed easing be required, then we will most certainly be on our way to stagflation. Let’s face it, there is a time to spend and a time to save and with economic uncertainty where it is, saving is the right way to go regardless of whether or not the Fed makes it an unappealing proposition.

There is still great risk in the marketplace, whether it’s from a global slowdown or the Euro debt crisis. Do not be fooled into making irresponsible decisions just because that is what the government wants you to do!

Put your money with the financially responsible regions around the globe as they are the ones mostly likely to experience growth. A very simple way to do this is through the forex market!

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Turning A Negative Into A Positive!

While silver linings may exist in Japan, this is clearly not the case in the US, as yesterday the GDP revision, personal consumption, and initial jobless claims figures all missed their mark. So we are seeing Dollar weakness in the marketplace, but don’t mistake this for risk appetite. Right now the fundamentals are starting to come back more into focus, as risk themes become more muddled.

One such beneficiary of risk themes has been the Suisse franc, which is now looking like the best safe-haven currency out there. It is hitting all-time highs vs. the Euro, the Dollar, and the Pound and the IMF just called for Switzerland to raise interest rates—which will make it more desirable if the Suisse do comply.

Later this morning, the US will report personal income and spending numbers, though it seems doubtful that these will impress the markets. Stocks are flat to slightly higher, with commodities stronger as next week is shortened due to the Memorial Day holiday here in the US. This means that banks are closed on Monday, which will reduce volume but not volatility.

In the forex market:

Aussie (AUD): The Aussie is mostly higher as yield-seeking is taking place on Dollar weakness. While there is still considerable risk in the market, the markets are becoming less enamored with the US dollar as a safe haven.

Kiwi (NZD): Another up day for the Kiwi on rumors that China has been buying in order to diversify it’s considerable currency reserves. It is at a 3-year high. (Click chart to enlarge)

Loonie (CAD): The Loonie is losing its luster as it is being sold because of Canada’s close ties to the US. As economic conditions decline here in the US, Canada will decline as well as the US is by far the largest importer of Canadian goods and services.

Euro (EUR): The Euro is mostly higher as the “anti-Dollar” is benefiting from US economic malaise despite the problems in the Euro zone with the periphery countries debt problems. Euro zone economic confidence figures came in lower than expected.

Pound (GBP): The Pound is mixed as market concern over weak economic recovery in the UK is near the forefront. However, home prices rose for the month more slightly more than expected showing that there is still price stability and inflationary pressures in the economy.

Swissy (CHF): The Swissy is making new all-time highs vs. EUR, GBP, and USD after the IMF called for a rate hike in Switzerland. The Swissy has been receiving a major bid from its safe-haven status as a better performing economy than both the US and Japan. (Click chart to enlarge)

Dollar (USD): The Dollar is weaker across the board after the second day of weak economic data. Personal income figures came in as expected at .4%, but personal spending was slightly lower than expected at .4% vs. the expectation of .5%. Monday is a bank holiday in the US.

Yen (JPY): The Yen is mixed after Japanese CPI data ended 25 months of deflation after posting a .6% gain. Retail sales however fell 4.8%, though that was better than expected. The Fitch downgrade of Japan’s credit is a largely non-issue, and perhaps this will set the stage for some economic growth in Japan going forward.

The major theme of the last two days in US dollar weakness as negative economic data paints a picture of an economy in trouble. It is amazing that this makes the Dollar less desirable than the Euro, which is mired in its own problems with the debt problems of its periphery members.

Nevertheless, because Monday is a bank holiday here in the US, we could see some squaring of books this weekend though I don’t think the usual risk-off play of buying Dollars will happen.

Currencies like the Swissy and gold by proxy are taking away some of the Dollar’s attributes as the major safe-haven currency, which could be a problem if the US economy continues to sink.

With the problems that ail the US economy and no apparent solutions coming from US policy-makers, it could be a long summer for USD!

Enjoy the long weekend folks, I’ll be back on Tuesday!

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Summer Soft Patch?

The problem with all of these emergency and stop-gap measures is that everyone knows they are fleeting, so this does not change consumer sentiment or behavior. Temporary solutions provide temporary relief, and the complete lack of confidence in politicians to solve our problems is alarming.

But it’s not just here in the US where these issue occur, though we are the worst of the bunch. The ECB had to take the other tack, pressing the individual countries to solve the debt crisis and stating that the ECB would not be expanding its aid to Greece.

In the UK, the data has also gotten worse, with industrial and manufacturing production figures coming in way worse than expected, which may actually vindicate the BOE’s easy money policy. But therein lies the problem—people have caught on to the fact the economies are not healthy because monetary policy is so cheap so they act defensively which causes economic stagnation.

Would the reverse actually occur if Central banks stated raising rates? If you want to fool the people into believe things are well, shouldn’t they be doing the opposite of what they have been doing?

Things aren’t horrible everywhere, though, as China increased its imports by 28.4% showing signs that they may be pushing an agenda led by domestic demand. This will ultimately be a positive for New Zealand and Australia, and possible Japan when they get back on track.

In Canada, the unemployment rate shrank to 7.4% as more jobs were added to the economy, though the participation rate came in slightly lower. So all of this adds up to risk aversion in the markets, with declines in both stocks and commodities.

In the forex market:

Aussie (AUD): The Aussie is lower across the board on risk aversion as well as the fact that recent weaker economic data has shifted the focus more toward the Kiwi and Loonie.

Kiwi (NZD): The Kiwi is actually mostly higher despite the risk aversion as the increase in Chinese imports helps New Zealand’s economy. A fresh all-time high was made earlier vs. USD.

Loonie (CAD): The Loonie is mixed today as lower oil prices and a sputtering US economy put pressure on the currency, yet better than expected employment figures show that the economy is moving forward. Canada added 22.3K jobs vs. an expected 20K jobs gain, and the unemployment rate shrank to 7.4% from an expected and previous 7.6%. (Click chart to enlarge)

Euro (EUR): The ECB has re-assumed the role of parent and not enabler with regard to the member countries and the debt crisis. The message is loud and clear that the inaction over the past year to find a resolution will no longer be tolerated. German CPI data came in as expected and growth projections for the economy were also expanded.

Pound (GBP): The Pound is lower across the board after industrial production figures showed a decline of 1.7% vs. an expected no-change, and manufacturing production figures showed a decline of 1.5% vs. an expected decline of .1%. This is indicative of the weakening economic conditions in the UK. (Click chart to enlarge)

Swissie (CHF): The Swissie is mixed as it’s safe haven properties are causing demand, but less so than the Dollar and Yen as the economic problems in the Euro zone could have a carry-over effect.

Dollar (USD): The Dollar is showing some strength on risk aversion heading into the weekend on the usual “take risk off ahead of the weekend” play. No news out of the US is good news.

Yen (JPY): The Yen is stronger across the board on risk aversion as carry trades are abandoned, at least for the weekend carry. Rumblings of some type of monetary intervention keep making the rounds, and perhaps the market is willing to probe these suspicions by buying Yen.

So is it just a soft patch, or something worse? I have not seen any evidence that would lead me to believe it is the former, as long-term outlooks are still being held back by misguided government policy. So far nothing has changed.

QE2 was intended to buy the government time to make strides toward getting its fiscal house in order, but seemingly they have done nothing. Now that summer season is upon us, these guys in Washington can’t wait to get out of Dodge and retire to whatever golf course they can to avoid the scrutiny of the general public who elected them and are struggling to make ends meet.

Pretty soon election season will be upon us so that means its time to hit the campaign trail which will further delay any type of action. Meanwhile, the economy stagnates and the malaise and lack of confidence grow.

Not quite the recipe for growth, now is it? The beauty of the forex market is that you don’t have to stand idly by and take it! You can invest your hard earned money in the currencies of countries that are committed to solutions and not just kicking the can down the road.

Isn’t time you came to see what the forex market is all about?

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Quick Turnaround!

Yesterday’s emergency meeting of leader failed to produce anything and the major outcome that was reported was “bickering”. EU leaders need to come up with a solution by the end of the month in order for Greece to secure an IMF payment which could be withheld if no action is taken. Germany is still insisting on measures that would constitute a default, and no resolution appears close.

It is patently clear that Germany is the obstacle in this process and while bailouts aren’t my cup of tea, if they want to save the Euro then they need to compromise. Germany stands the most to lose in this entire ordeal, so in my opinion they are negotiating from a position of weakness and not strength. Stay tuned for this one!

In the UK jobless claims came in three times higher than expected and wage growth has slowed though the unemployment rate has remained steady at 7.7%.

US CPI data is due out later this morning and is expected to vindicate Bernanke as fuel costs have come down. Yesterday’s regalia of Bernanke and the Fed may have stolen the headlines from the re-opening of “Spiderman” on Broadway as the best staged event of the day!

So the markets have started the day in risk aversion mode, with stocks and commodities lower around the globe. Lost in yesterday’s excitement over tame Chinese CPI is the fact that raised bank reserve requirements in an attempt to slow their economy.

In the forex market:

Aussie (AUD): The Aussie is higher to start the morning despite the risk aversion in the marketplace. Yield-seekers see a positive economy and the RBA honcho’s conflicting comments that inflation was more likely than not could foreshadow a possible rate hike. New dwelling starts rose 3.1% vs. an expectation of a decline of .8%.

Kiwi (NZD): The Kiwi is lower across the board despite a much better reading of consumer confidence from last month. Considering that they were dealing with an earthquake last month, this was to be expected. Risk aversion and money flows are putting pressure on the Kiwi.

Loonie (CAD): The Loonie is mixed despite lower oil prices to start the morning. The fate of the Loonie lies somewhat with the US CPI data and what the market response to the release may be.

Euro (EUR): The Euro has given back all of yesterday’s gains and then some. While Euro zone industrial production figures came in better than expected, the problems with the Greek debt crisis are weighing heavily on risk in the markets. 

Pound (GBP): The Pound is mostly lower after jobless claims came in showing an increase of 19.6K vs. an expectation of 6.5K. While the UK economy is definitely slowing, how the avoid stagflation is anyone’s guess.

Swissie (CHF): The Swissie is mixed as its safe-haven properties are counter-balanced by the sentiment that the SNB will not raise interest rates due to recent franc strength. Declining import prices reflect Swissie strength.

Dollar (USD): The Dollar is higher across the board as risk aversion ahead of this morning’s CPI data release and specific Euro weakness are driving demand. Should inflation come in less than expected, pressure for higher rates would abate.

Yen (JPY): The Yen is surprisingly mixed this morning as well, as risk aversion has increased demand, yet not enough to unwind carry trades. With the risk coming from Europe, it appears as though money flows are driving price action. The Nikkei was actually higher last night, the only major market index to post gains.

As you can tell by now, sentiment in the marketplace can shift on a dime and there is still major risk around the globe. Some days the positives are emphasized (like yesterday), while others the negatives shine through.

The problems in Europe are too great and the Greek situation may be a microcosm of what is really taking place. Germany is playing with fire in this situation and ultimately they might end of getting burned before they drag everyone else into the fire.

While the rest of the globe has a “wait and see” attitude at this point, European leaders essentially have 2 weeks to get this figured out. So while the only fireworks expected this summer should occur on July 4th, there may be other “independence” celebrations taking place.

Of course this bound to bring about a lot of pain as well, and certain market volatility. So don’t take time away this summer, as the action may be too great to miss!

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Here We Go Again!

Last night another earthquake rocked New Zealand in the city of Christ Church—again! The more serious of the quakes was of a 6.0 magnitude and the extent of the damage is still unknown. This is sure to slow the rebuilding efforts from the last earthquake, and likely to delay any potential rate hikes for some time.

Also weighing on markets is the Greek debt crisis, and though officials claim to be able to come up with a resolution by month-end, at this stage of the game this doesn’t seem likely.

Tomorrow China will report its CPI data and there is fear in the markets that higher than expected inflation there could cause the PBOC to raise interest rates as they attempt to slow down growth. This would be very unwelcome in a marketplace that is already seeing weakness and is on high risk alert due to the problems in the Euro zone.

CPI data due out this week from different regions around the globe will show how hot inflation is, and it appears as though global stagflation may be on the way. Stocks are higher to start the morning, though oil prices have pulled back. There are some elements of risk-taking in the market with the exception of Kiwi weakness, though that may change throughout the day.

In the forex market:

Aussie (AUD): The Aussie is higher on risk-appetite this morning despite the setback in New Zealand. Business and consumer confidence figures are due out this week, though expect volatility tomorrow on the release of the Chinese data on what is otherwise a slow week for news out of Australia.

Kiwi (NZD): Well I guess you have to have faith in a city named Christ Church after another round of earthquakes rocked New Zealand’s second largest city. This will have an obvious impact on the rebuilding efforts from the last earthquake, and could delay rate hikes going forward. 

Loonie (CAD): There’s not a lot of news due out this week for the Loonie so expect it to trade closely tethered to oil prices and to be affected by US economic data. Risk events such as the Euro debt situation and Chinese CPI could drive3 price action as well.

Euro (EUR): The Euro is rebounding some from last week’s selling as the Greek debt crisis is the major news driving the shared currency. Industrial production figures due out mid-week and CPI data on Thursday could give ECB hawks some ammunition, though the market is starting to believe that raising interest rates while the debt crisis is still uncertain may be irresponsible. (Click chart to enlarge)

Pound (GBP): The Pound is in focus this week as a slew data is due out this week, starting with CPI tomorrow, employment on Wednesday, and retail sales on Thursday. Lat week’s data came in worse than expected, though some are blaming the Royal Wedding for the slowdown, which may be plausible but not likely.

Swissie (CHF): The Swissie is showing some strength today despite the risk appetite in the market ahead of an economic report due out tomorrow and the SNB rate policy decision on Thursday. While no change is expected to the interest rate, Switzerland has been performing exceptionally well in the face of the global economic slowdown.

Dollar (USD): Last week was the biggest one-week gain for the Dollar in some time, led mostly by Euro weakness and risk aversion. There is a lot of data due out his week, with Advance retail sales, CPI data, housing starts, and consumer confidence all on the docket. Taken together this will show the current state of the US economy as we move into the summer months.

Yen (JPY): The Yen is noticeably weaker as the market is anticipating some type of monetary easing in the not-so-distant future. A 2-day BOJ meeting may produce this result, as economic weakness still persists and recession has “officially” taken place. Machine orders figures were negative overnight.

So it looks like round two of the economic slowdown is about to begin and we may be in for another perfect storm of Euro debt, Chinese slowdown, and higher commodities prices. Though this time it may add up to stagflation.

Japan is still recovering so its economy is not yet back on track, and everyone else seems to be slowing down. Easy monetary policy by Central bankers is intended to buy time to fix problems but it is apparent that the time given has not been used wisely.

So here we are again. Leaders in the Euro zone have not been able to come up with a solution for these debt-laden countries and interest rates have doubled since the beginning of the crisis making it nearly impossible to resolve now. Yet they say that they hope to have a solution in the next two weeks despite the lack of agreement thus far. Good luck with that!

The US is doing nothing about its budget deficit problems, as well as the housing market that is hanging over the economy. Housing starts figures this week are bound to paint a bleak picture.

There is still great risk in the marketplace, though how long “extend and pretend” can continue is anyone’s guess.

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It’s Ugly Out There!

This morning, the all-important Non-Farm Payrolls report will be released at 8:30AM EST which will show the state of the employment situation here in the US. As a result of Wednesday’s dismal ADP employment change figures, analysts have revised their initial projections lower so it is highly uncertain how the market will react to the release.

What we do know however is this: that the US and the global economy is slowing and that there are still major risks to stability. The debt crisis in the Euro zone, the unstable situation in the Arab countries, and Japan still dealing with the nuclear crisis as a result of the natural disaster all have the potential to add fuel to the fire.

In the Euro zone, they are preparing for the reaction to the news that a second bailout for Greece is near completion with potential ramifications from both an economic and political standpoint.

PMI service data for the Euro zone came in slightly better than expected, and Merkel’s comments yesterday that the economy in the EU is healthy but for a few countries with excessive debt may be spot on.

But the big news this morning is the NFP, where forecasts have been revised to as low as an addition of 100K jobs, with the new median being somewhere around 165K. The unemployment rate is expected to remain steady at 8.9%.

Both stocks and commodities are lower to start the day, and it is so hard to say what will happen on a day like today as expectations are all over the board, so volatility could be extreme of non-existent.

In the forex market:

Aussie (AUD): The Aussie is mostly lower ahead of the NFP as risk aversion going into the weekend is a safe bet. The Performance of Service Index came in lower than last month’s reading, posting a figure of 49.9 vs. last month’s 51.5.

Kiwi (NZD): The Kiwi is lower across the board as building permits figures missed expectations, showing a decline of 1.6% vs. an expectation of a gain of .5%. This in addition to making recent highs and today’s risk aversion make the Kiwi a likely candidate for profit-taking.

Loonie (CAD): The Loonie is mostly lower as oil prices have retreated to under $100 ahead of this morning’s NFP report. The Loonie will be extremely sensitive to this release as what’s good (or bad) for the US affects Canada greatly.

Euro (EUR): The Euro is mixed but somewhat flat against USD as the market is unsure whether the anti-Dollar properties of the Euro make it a decent alternative to the Dollar despite the risk in the market. Euro zone PMI Composite and Services figures came in better than expected lead by Germany, and the news that another Greek bailout is forthcoming may allay market fears. 

Pound (GBP): The Pound is lower across the board as PMI services figures came in lower than expected posting a reading of 53.8 vs. an expected 54.2. While not a huge miss, rate hike expectations for the UK are at their lowest levels in nearly 6 months despite the inflation in the UK economy. (Click chart to enlarge)

Swissie (CHF): The Swissie has been on tear of late as the preferred safe-haven currency of choice, making new all-time highs vs. a range of currencies including USD. This makes it a likely candidate for reversal should risk abate in the market, and that could start with NFP today and the Greek bailout around the corner.

Dollar (USD): The Dollar is gaining some strength from risk aversion this morning ahead of NFP, but it has been losing its luster as a safe-haven as the economic data has been weak of late prompting the market to believe that QE3 may be an option.

Yen (JPY): The Yen is stronger across the board on risk aversion despite the notion that Prime Minister Kan’s plan could result in a lame-duck government which may delay the recovery.

Wow! Simply wow! The Non-Farm Payrolls report just came in a showed a dismal gain of 54K with the unemployment rate coming in at 9.1%. This is an absolutely horrible number and a sign that US economy is still very weak.

With uncertainty running rampant and the government doing absolutely nothing to fix our problems, this is a huge no-confidence vote by business who will not hire and add to their cost structure in the face of rising deficits, increased regulation, higher taxes, and unknown health care costs. Bad government policy and the focus on the wrong things is what has gotten us to this point, and it may be time for a nuclear enema in Washington DC.

The markets are obviously selling-off as a result, with the Dollar unbelievably strengthening despite the fact that QE3 may be a real possibility. So it looks like the only “pay day” is for the stooges in Washington, who take home a large check for doing relatively little.

Remember, you can take action against bad policy here in the US—invest abroad. One of the best ways to do this is through the forex market, where not only can you get off this sinking ship of the US dollar, but get paid interest to do so!

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Bubble Ben Bungles!

In the Euro zone, German Industrial production figures came in lower than expected, and another ratings agency stated that indeed a rollover of Greek bonds would constitute a default. Let’s not forget that a default will trigger a massive event, led by credit default swaps (CDS) which were termed “financial weapons of mass destruction” and greatly contributed to the economic collapse of 2008. GDP figures came in as expected.

The Fed’s Beige Book report is due out later today but will tell us what we already know, that the economy is weakening. The powers that be are attempting to pass this off as a “soft patch” so that their summer vacations can go interrupted.

Later today we will get New Zealand’s interest rate decision, which is expected to produce no change. Tonight will bring Japan’s GDP figures, and as the Yen strengthens the talk of Bank of Japan monetary intervention increases.

Tomorrow is the rate decision in both the Euro zone and the UK.

So the markets are trading lower this morning on risk-aversion, as the outlook continues to worsen.

In the forex market:

Aussie (AUD): The Aussie is trading lower on risk aversion ahead of tomorrow’s employment report, holding support currently just above 1.06 vs. USD.

Kiwi (NZD): The Kiwi is lower on risk aversion as well and this afternoon’s RBNZ rate decision is unlikely to produce a change in policy or a hawkish statement. A weaker Kiwi will be desirable in the event of a global slowdown.

Loonie (CAD): The Loonie is mostly lower on lower oil prices and risk aversion despite the fact that housing starts came in better than expected, posting gains 183.6K vs. an expected 182K. While these are not world-beating numbers, anything positive is welcome at this point.

Euro (EUR): The Euro is mixed to lower as GDP figures came in expected showing moderate growth of 2.5%, though German industrial production figures came in lower than expected. The potential resolutions to the Greek debt crisis are being met with scrutiny, and not all members of the Euro zone are on the same page. 

Pound (GBP): The Pound is mostly lower ahead of tomorrow’s rate policy decision as Moody’s suggested that the UK’s current credit rating may be in jeopardy. No change is expected for tomorrow’s release.

Swissie (CHF): The Swissie is strong today as dual effect of risk-aversion and an unemployment report showed a rate of 2.9% unemployment are increasing demand.

Dollar (USD): The Dollar is stronger on the safe haven demand despite the weakening economic picture here in the US. If we don’t start to tackle the fiscal side of the equation, we may be in big trouble.

Yen (JPY): The Yen is the strongest today on risk aversion as carry trades are un-wound and tonight’s GDP release is expected to show negative growth. While this is no surprise after the natural disasters that hit them, it appears as though the calls for BOJ intervention may not be worrisome to the markets.

Poor Bubble Ben. The guy is getting no help from Washington DC and is the unfortunate whipping boy for all that ails us. Nevertheless he is doing all he can given the circumstances.

While I give him a lot of heat for the decisions he makes, he is merely reacting to the lack of leadership in government today. I think yesterday’s Q & A session was very telling, and he may not be getting a lot of sleep at night these days.

There are tougher times ahead for us, the longer we continue to extend and pretend is only going to make it worse.

To learn more about how you can take advantage of world events through the currency market, be sure to check out our currency trading courses!

To follow these events live with a free, real-time practice account, click here! Don’t miss out on the world’s fastest growing market!

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Chinese Growth Steady!

The fear was that if inflation came in higher than expected in China, the Central bank would raise interest rates to try to slow growth. If Chinese growth slows, then the global economy is in BIG trouble. Think about these figures for a moment. Everything is showing double-digit gains, with retail sales figures growing close to 17% YoY. Contrast that with the US advanced retail sales figures due out later this morning which are expected to decline by .5%.

You tell me which economy is more important to the world right now?

Another piece of news that had the potential to move markets was the release of the UK CPI data, which also came in as expected showing headline inflation of 4.5%, with core inflation coming in better than expected at 3.3% vs. an expectation of 3.5%. At this point it is apparent that the BOE is content to allow this extraordinary inflation (by UK standards) to persist with the hope that government austerity will reduce demand and cause prices to fall naturally. Sounds like they are heading more toward stagflation to me.

In Japan, the BOJ rate policy decision left policy unchanged, and there was a minor hope that the BOJ would move to be more accommodative to try to help the recovery.

This all adds up to risk-taking in the markets, with stocks trading higher, though commodities are lower.

In the forex market:

Aussie (AUD): The Aussie is higher as steady Chinese growth means it is unlikely that the government will enact slowdown measures which is good for Australian exports. Business confidence figures were slightly lower than last month, but risk appetite is strong to start the morning.

Kiwi (NZD): The Kiwi is higher on risk appetite, shaking off yesterday’s decline after the earthquakes that just occurred. While expectations for the next rate hike have shifted dramatically, as long as China keeps growing the New Zealand economy should recover.

Loonie (CAD): The Loonie is mostly higher despite lower oil prices which are trading at 96 and change. While there is no major news out this week for Canada, expect the Loonie to trade with US economic data, especially if it is weak.

Euro (EUR): The Euro is trading mostly higher despite yesterday’s S&P downgrade of Greece’s credit rating to CCC from B. To be honest, I didn’t even know that that rating exists! This makes Greece the second lowest-rated country of those with ratings. Nevertheless, the market believes that a resolution is forthcoming by the end of the month.

Pound (GBP): CPI data in the UK came in as expected at 4.5%, as did retail prices though home prices fell slightly. The UK still has a persistent inflation problem and the BOE has chosen to allow it to continue in the face of declining economic data. This sounds like stagflation to me.

Swissie (CHF): The franc is weaker across the board after the SECO report lower economic expectations for 2012, citing recent currency strength as an impediment to its exports. While growth has been steady for 2011, don’t look for the SNB to raise interest rates on Thursday as they don’t want to contribute to further strength.

Dollar (USD): The Dollar is weaker on risk appetite as we await the release of the US advance retail sales figures and PPI data later this morning. The expectation for a decline in the retail sales of .5% is alarming and indicative of a lack of confidence in the current direction of the US economy.

Yen (JPY): The Yen is mostly weaker on risk appetite and the BOJ left monetary policy unchanged last night. There was a slight expectation that they would ease policy to help with economic recovery, but it may be too soon for that. My guess is that they would wait until supply chains are repaired and factories are back to full capacity before enacting such measures. It doesn’t make sense to weaken now to encourage exports if companies aren’t ready for it. 

It’s their time now. China and other emerging markets are playing catch-up with the US and Europe and continue to grow at a rampant pace. The US is becoming less important on the global stage as China continues to grow. It won’t be long before the Chinese are able to exert their influence which may or may not be in-line with US interests.

In a nutshell, China has given us the rope to hang ourselves and we’re just about dead. But as long as China keeps growing, the global economy may not care. Politics in Washington are starting to heat up and it is patently obvious that our current path is wrong and unsustainable.

Whether or not we have the will to succeed in the face of adversity used to be undebatable, but now the question must be asked. Are politicians willing to share in the same sacrifice that they are asking of the general public? My heart tells me yes but my head tells me no, which means unfortunately that the US economy will continue to decline.

So invest in areas that seem to be on the rise, and there is no better way to do this than through the forex market!

To learn more about how you can take advantage of world events through the currency market, be sure to check out our currency trading courses!

To follow these events live with a free, real-time practice account, click here! Don’t miss out on the world’s fastest growing market!

View the original article here

Enough Already!

This is excessive prodding by the Fed is having the reverse effect of what was intended and the costs no longer outweigh the benefits. So far, it has been all monetary policy guiding the ship and its time the politicians in Washington step up and do something about fiscal policy.

Don’t expect that to happen any time soon though as the US slips into further mediocrity because politicians are to busy campaigning and not doing the job they were elected to do. As the US loses further clout and credibility on the world stage, it will be much harder to maintain influence. In fact, Chancellor Merkel of Germany is here in the US accepting an award of some sort, yet she is completely vilified in her own country despite Germany’s economic strength.

And speaking of German strength, factory orders came in much better than expected earlier this morning, as did Euro zone retail sales figures. However, the Greek debt crisis is still present and the “solution” of a roll-over of Greek bonds is unclear as to the response.

Overnight in Australia, the RBA left rates unchanged as expected, and the dovish accompanying statement has caused some Aussie weakness this morning.

However today the markets are set to open higher, with global stocks and gold leading the way. Oil has pulled back to a 98 handle, as Saudi Arabia said it will increase production. So the markets are moving more on individual fundamentals this morning than broad risk themes, though reversion to mean could take place.

In the forex market:

Aussie (AUD): The Aussie is mostly lower after the dovish comments from the RBA who maintained that current interest rates are “appropriate”. At 4.75% they might be right, but expectations of a further hike have been diminished.

Kiwi (NZD): The Kiwi is the main beneficiary of the RBA rate pause, as the RBNZ rate policy meeting is tomorrow afternoon and it represents the next possibility of a rate hike. While no change is expected, the statement could be a bit more hawkish as the NZ economy has fared better than most have expected.

Loonie (CAD): The Loonie is strengthening despite lower oil prices after yesterday’s PMI figures beat expectations. The Canadian Finance Minister Flaherty said yesterday that Canada is looking to balance its budget within the next 3 years which elicited a favorable response from the markets.

Euro (EUR): The Euro is mostly higher after retail sales figures came in better than expected, showing a gain of 1.1% vs. an expected no change as the monthly figure rose .9% vs. an expected .3%. In addition, German factory orders rose 10.5% vs. an expectation of 9% showing signs of strength. Now if they can just get that pesky debt crisis ironed out.

Pound (GBP): The Pound is mostly higher as well as Dollar weakness on risk taking is causing the safe-havens to sell off. While Thursday’s rate decision is expected to provide no change, the release of the minutes will be more important.

Swissie (CHF): The Swissie is getting a respite from recent high demand as the safe haven currency is out of fashion today despite CPI data which came in slightly higher than expected at .4%. A rate hike would seem inappropriate at this time.

Dollar (USD): The Dollar is mostly weaker as risk taking is picking up steam as there is no really important data from the US that could derail sentiment. Unless Bernanke says something dumb later today, which is unlikely.

Yen (JPY): The Yen is selling off this morning as safe haven demand is decreasing and carry trades are starting to be re-established after last week’s selling. Japanese GDP figures are due out tomorrow night and are expected to decline which could prompt the BOJ to act to jump-start their economy. 

It’s put up or shut up time here in the US. The markets and the economy have had ample to time to prepare for the day that the music died, i.e. the end of QE2. The fact that politicians have done nothing on the fiscal side of the equation has left us severely unbalanced.

While the Fed may have been the root cause of the crisis, they are now the only hope for a solution. The longer these non-actions play out, the more the uncertainty will persist which will continue to keep us in this economic malaise.

While I am not an economist, I’ve begun to hear rumblings that the true effects of QE2 haven’t been felt yet. As the massive liquidity makes its way through the markets, this could set off some inflationary factors which coupled with economic disinterest could land us square in the middle of stagflation which is the worst possible scenario.

Only time will tell what happens, and we are running out of it as the clock is ticking!

To learn more about how you can take advantage of world events through the currency market, be sure to check out our currency trading courses!

To follow these events live with a free, real-time practice account, click here! Don’t miss out on the world’s fastest growing market!

View the original article here

Is Anything Working?

This week is an important one for the US economy based on the employment figures coming out and it started off yesterday with a dud. The ADP employment change figures showed that a measly 38K jobs were added vs. an expected 175K. This has caused analysts to revise their forecasts for Friday’s Non-Farm Payrolls lower.

So I ask again, who’s working? Is anything working? Yesterday’s market sell-off showed that indeed very little is happening to move the US and thus the global economy forward. In the midst of yesterday’s sell-off, Moody’s downgraded Greece to Ca1, which is basically a junk rating and it should be noted that nearly 50% of those with this rating default on their obligations.

So it is going to be much harder for the EU to manage this crisis, as this takes many bond investors out of the game as they can’t invest in stuff with junk status. Nevertheless, Chancellor Merkel of Germany was out in front claiming that that there is no problem with the Euro, but rather a debt problem in certain countries. Germany remains committed to the Euro, and the outlook for growth in Germany is extremely positive.

Meanwhile in the UK, a BOE policy-maker said he would favor further QE if the economy weakened. It appears as though all these guys are ready to double-down on bad policy and that the UK is prepared to stick it to its citizens by way of inflation.

Lastly, Prime Minister Kan in Japan survived the no-confidence vote after signaling that he will resign after Japan appears to resolve the economic crisis that has come about after the natural disasters. This has removed some of the political uncertainty (fear) in the markets, though the Nikkei followed US stocks lower regardless.

So there is some mild risk-taking going on in the US session to start the day, with stock futures and commodities slightly higher to start the morning. Whether this will continue after the initial jobless claims report later this morning that is expected to show a loss of 417K is anyone’s guess.

In the forex market:

Aussie (AUD): The Aussie is mostly higher after retail sales figures came in higher showing a gain of 1.1% vs. an expected .4%. While trade balance figures came in lower than expected, both of these data points can be attributed to the flooding which cost them negative growth.

Kiwi (NZD): The Kiwi is somewhat lower after powdered milk prices fell thereby hurting one of New Zealand’s largest exports. The Kiwi has reached new all-time highs vs. USD, so yesterday’s pullback may be welcome.

Loonie (CAD): The only economy that gets hurt worse than the US when there are problems in the US is the Canadian economy. While the market has read this week’s rate policy statement as hawkish, ultimately it will be the data that drives the decision.

Euro (EUR): The Euro is higher across the board despite the downgrade of Greece yesterday as there is little news that could derail it from a fundamental sense. The anti-Dollar position of the Euro is the true driver of price action, and Merkel’s comments have helped restore confidence. (Click chart to enlarge)

Pound (GBP): The Pound is somewhat higher despite the comments about further monetary easing as a possibility if economic conditions don’t improve. PMI construction data came in better than expected, but pales in comparison to yesterday’s 2-year low of PMI.

Swissie (CHF): The Swissie continues to behave as we would expect from a safe-haven currency. At all-time highs vs. USD, this is the safe-haven currency of choice at the moment, along with gold. (Click chart to enlarge)

Dollar (USD): The threat of QE3 being launched on the US economy due to economic weakness has the US dollar in the crosshairs. Further Dollar weakness could continue to drive markets (and inflation!) higher, but to what end? These employment figures look awful and it is a failure of government on fiscal policy, not that rates aren’t low enough, that has us in this economic malaise.

Yen (JPY): The Yen is somewhat mixed after the no-confidence vote did not oust the Japanese PM, yet there is still significant risk in the market and I’m a bit surprised that the currency market has behaved as it has despite what stocks did overnight.

Initial jobless claims just came in at a loss of 422K, which is largely in-line with expectations. So the markets may react favorably today after yesterday’s massive sell-off. But make no mistake about it, the US and hence the global economy is slowing and all attempts by the Fed to keep growth positive may be misguided.

Yet the QE3 argument will be around for a bit, especially if tomorrow’s NFP report shows an extremely weak number. Don’t forget that the market has already priced in a lower expectation of this figure based upon yesterday’s ADP report, so what may seem like a big miss could essentially be seen as positive.

So at this point, I will take anything over 100K though the initial volatility could be extreme. It is no secret that the global economy is slowing, and it is up to the government to do a better job to manage expectations, rather than continue to lie to keep themselves in power.

To learn more about how you can take advantage of world events through the currency market, be sure to check out our currency trading courses!

To follow these events live with a free, real-time practice account, click here! Don’t miss out on the world’s fastest growing market!

View the original article here

Video Review : Forex Confidante

Hey There ! Here’s another little forex video review. In this short clip, I’m reviewing the Forex Confidante strategy and I trade live using it . I hope you’ll enjoy it ! Looking forward to hear from you ! Samuel !

You can read the whole written review of this product by clicking here !

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The UltimateForexTradingMethod

Hi There !!

After more than 2 years of work, I’m proud to introduce you to the UltimateForexTradingMethod, my own forex strategy. It has been a pretty tough work to develop and create this “never seen before” strategy but here it is !

After having reviewed all the different forex products I reviewed, it seemed to me that none of them was really clear and going to the point. Indeed, most of them were scams.

I took action, firstly because the Forex is really a passion for me and then because I needed to do something for all those beginners who don’t know where to start. However, the UltimateForexTradingMethod is not only aimed at newbies. Indeed, it explains an unseen strategy that makes tons of pips and I think both newbies and veteran want to make pips…

What I do like about the method I’ve discovered is that it really highlights strong signals, and as a consequence you don’t need to worry about the trade.

Actually the product doesn’t only consist in one method, there are actually 3 methods.

Let me tell you a bit more about that :

-At first you have a basic but extremely effective bounce off trading strategy.

-Then you have a breakout trading strategy which is pretty amazing.

-And finally, the secret one, which is the biggest discovery of my life : The UltimateForexTradingMethod !

All those strategies are coming with 5 long videos which resume, explain, and illustrate, the different methods.

Now it’s time to stop talking about all of that and let you have a look the product !

Looking forward to hear from you !

Cheers !

Samuel.

This entry was posted on Saturday, February 13th, 2010 at 4:45 PM and is filed under Forex Method Reviews. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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Forex Robot : Forex Derivative 2.0 Review

 

Hi There !! I’ve been kinda busy those last times with my French exams but today I’m coming with a new review !

Indeed, we’re going to talk about the Forex Derivative Robot which is another big scam ! As you might guess, I’m not gonna be long ! Anyway here’s my review so enjoy lol !

So what is exactly Forex Derivative ? This is an expert advisor that (in theory) you just have to put on your metatrader platform and then wait for the profits… But once again that’s not true !  This product is actually another robot scam and it will only make you lose money !

Actually there’s not a lot left to say about this crap product… So here’s some comments taken from few forex forums :

-”I bought this EA and put it on 4 $5,000.00 demo (thank God) accounts with 4 separate brokers. In one week 2 accounts were down to about $3,500.00 and the other 2 hovered around $4,000.00! “

-”This software contains optimized settings (optimized parameters are embedded into the code) to give great results in backtests. But it does perform poorly in real forward tests and for real trading accounts.”

Personally i’ve tested Forex Derivative on a $1000 demo account and about three weeks latter, the account had lost $311 and was up to $689... Isn’t that such a great forex robot ?

The only thing I can tell you now is : “Stay away !!”

Hope it’ll help !!

Trade Safely.

Cheers, Samuel.

PS : I’ll be coming soon with a brand new forex video review !!

This entry was posted on Thursday, June 25th, 2009 at 3:35 PM and is filed under Forex Robot Reviews. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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Forex Rebellion Review

Hello There, Forex Rebellion is actually the product everybody is currently talking about. Once again I’ve decided to act in order to figure out if this forex trading system is really worthwhile or if it is only a useless forex method  !

To make a long story short, Forex Rebellion is a forex trading strategy which consists in :

-The main manual

-Video Tutorials

-Custom Forex Rebellion Indicators

One thing I loved is that the method is really well explained. It isn’t hard at all to understand and most of all it is fast to apply. One thing I didn’t love : there are too many videos. Some of them are useless and it seems that they are only there to justify the price you have to pay.

Nevertheless, my first impression about the product was basically good. It seems simple and I was excited to test it !

I started trading the Forex Rebellion formula with a $1000 capital and after 15 days, my account was up to $2567 which is really good you will admit ! I had 9 trades and only 3 of them weren’t profitable.

I think Forex Rebellion is a great product : first it’s mechanical and very easy to implement and to apply, then, when you trade with this method you feel that you are getting strong signals. As a consequence, you do not doubt about how your trade is going to go, you’re pretty sure of what is going to happen and that’s very reasuring. To conclude, I advise this product to all the traders, who want to have a reliable mechanical trading system providing good signals.

Looking forward to hear from all of you !

Cheers, Samuel.

This entry was posted on Saturday, November 14th, 2009 at 7:37 PM and is filed under Forex Method Reviews. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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How to Make the Best use of a Demo Account in Forex ?

The point we are going to discuss here is in my opinion very important. The main thing we have to retain is that a demo account will never be a real account… Of course it seems very stupid but in reality, most people don’t make any difference between demo and live and they think their live account we’ll be exactly identical as their demo account….

A forex trading demo account is offered by almost every legitimate forex broker today. The brokers profit by automatically marketing their business to curious traders, while the traders themselves satisfy their curiosity and sometimes make up their mind about whether they should be opening a live account by spending some time trading the demos. Needless to say, the most important question that must be answered about demo trading is the extent to which it is similar to a live trading account. Do we really gain valuable experience about trading by being active in the safe and sanitized environment of the demo account? Let’s take a deeper look at this important question.

Regardless of how faulty your strategy or approach can be to trading in general, the maximum amount that you can lose or gain in demo trading is zero. Demo trading is a game, but forex trading is a highly risky activity that can have significant consequences for the financial well-being of a reckless trader. Of course, there is also the possibility that a competent trader will get rich trading currencies. In all cases, forex trading is about risk management, and since demo trading has nothing to do with risk, it can never be a reliable testing environment of your potential in the market. Demo trading is not even an approximation of live trading.

An interesting aspect of demo trading accounts is the large amount of starting capital that is made available to beginners, typically between $50-100,000. This gives a sense of false security, since the trader will probably think, if he’s unable to wipe out that much money in a short time, he can afford to learn the task by trading with real money with a misplaced sense of confidence. That is not bad for the broker, since any capital committed, and any trade initiated is a profit. But it is not good for the trader who must sooner or later come to the realization that the false confidence inspired by demo trading did not have any relationship to reality.

Demo trading is an excellent tool for understanding how forex software work, how you can develop strategies, and also for testing basic assumptions about the functioning of markets. There is no better way of learning about how to place a stop-loss/take profit order, for example, than doing so while demo trading. But demo trading is not for getting used to risk, or for understanding it. The only way of achieving that goal is trading with real money, by very small sums, probably by making use of a mini account at the same time.

This entry was posted on Thursday, December 31st, 2009 at 7:12 PM and is filed under Advice and Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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Forex Robot : Forex Megadroid Review

Hey There ! Today, I’m coming with a review of one of the “hottest” expert advisor available on the internet… Everybody’s been talking about it since March saying “Oh my god, this robot is truly amazing, you’re going to make $20,000 each month with a $30 starting capital !!” And I’m so tired about that ! Everybody’s lying ! Arghh ! You should read the rest of the review, in order to get an idea about the Forex Megadroid Robot.

For those who don’t know anything about Forex Megadroid, it is another forex robot that you only have to put on your metatrader account… It’s the perfect tool for the lazy trader… According to the Forex Megadroid website they had “No Losing Trade Since 20th March 2009!” and that’s the first lie ! Second lie comes there : “Forex MegaDroid™ Is The Direct Outcome From 38 Years Of Learning And Experiencing”. Third lie is here : “Turning $1 Into $4 In EVERY Market Condition”.  Anyway, you’ll have understood this sale page is only a BIG lie.

I’m so angry at these kinds of products ! The owners of this “stuff” are making millions of Dollars, really MILLIONS by selling crap to naive people ! 

For the moment, the robot is not performing that bad… But it doesn’t mean that it’s performing well, we’re really far far far away from a decent performance. What it’s sure is that it’s not performing as advertised ! And here’s the reason why :

“This robot appears to be a FAPT Scalper clone, with a few extras borrowed from other robots. If you review their posted trades for the past years you will quickly see that it doesnt trade at all hours, as they claimed. It trades in the exact same time window as FAPT. In fact Strategy 1, the more conservative strategy is pretty much identical to FAPT, and the only difference between this and the more aggressive strategy 2 is the Take profit level. Strategy 1 takes profit at 5 pips, and strategy 2 takes profit at 15 pips, and these two strategies run simultaneously. Beyond this, I see no grounds for their claims of Artifical Inteligence Algorithms. All their trades are scalper style trades, during the same hours as FAPT. They do not switch from one strategy to anouther depending on market conditions, they simply eliminate the more aggressive, higher profit strategy, at times. And I suspect they do this manualy.

Further, if you review back a few years you will find several instances where they seem to selectively employ their RecoveryMode. In instances where the EA has taken more than two full losses simultaneously the RecoveryMode is off. In instances where it has only taken one full loss the RecoveryMode is on, and even then there are instances where it placed two simultaneous orders following a major loss, the first at double position size and the second at regular position size. If you tally these two open orders, the total number of lots exceeds the account balance at 100:1 leverage. This is only possible at higher levels of leverage and even then its very questionable.     

MegaDroid just seems to be a FAPT clone designed to run on the eurusd pair. It only places one trade per each strategy per night. The only difference between the two strategies is the take profit level, with the higher 15 pip take profit being the more aggressive setting. It doesnt take the small losses that FAPT takes, rather it closes most bad trades at 1 pip profit, therebye maintaining its high win ratio. 

And there you have it. Its just a one horse wonder, anouther night scalper. I only does one thing, once per night, at one specific time, on one specific pair. (kind of like an old married couple). Its simply an amalgamation of the best from the best. 

Not to complain to hard, it can be a money maker, just beware. To achieve their results they use a 30% risk setting. A couple of full losses at this level can decimate an account. If you run the RecoverMode and double position size after a loss, Martingale style, it could crush your account even quicker, likewise for using RecuceLots false.”

What does that mean ? It means that in about 6-12 months this  robot would have stopped making  money, it will simply start blowing up your account ! So please, if you don’t want to lose money on the long term, stay away.

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Trading Tips + Vacations !

Hey There, Just this little message to tell you that I’m (still) in Vacations and that’s why, I’ve not been posting a lot these last times ! However, I’m currently reviewing few forex products and I think that I’ll be able to come up with some fresh reviews in about 3 weeks. Nevertheless, let me share with you 2 little (and great) effective trading tips I’ve just found on the internet !

“Understanding Fear


When a trader’s screen is pulsating red (a sign that stocks are down) and bad news comes about a certain stock or the general market, it’s not uncommon for the trader to get scared. When this happens, they may overreact and feel compelled to liquidate their holdings and go to cash or to refrain from taking any risks. Now, if they do that they may avoid certain losses – but they also will miss out on the gains.

Traders need to understand what fear is – simply a natural reaction to what they perceive as a threat (in this case perhaps to their profit or money-making potential). Quantifying the fear might help. Or that they may be able to better deal with fear by pondering what they are afraid of, and why they are afraid of it.

Also, by pondering this issue ahead of time and knowing how they may instinctively react to or perceive certain things, a trader can hope to isolate and identify those feelings during a trading session, and then try to focus on moving past the emotion. Of course this may not be easy, and may take practice, but it’s necessary to the health of an investor’s portfolio.

Greed Is Your Worst Enemy



There’s an old saying on Wall Street that “pigs get slaughtered”. These little pigs want more and more. This greed in investors causes them to hang on to winning positions too long, trying to get every last tick. This trait can be devastating to returns because the trader is always running the risk of getting whipsawed or blown out of a position.

Greed is not easy to overcome. That’s because within many of us there seems to be an instinct to always try to do better, to try to get just a little more. A trader should recognize this instinct if it is present, and develop trade plans based upon rational business decisions, not on what amounts to an emotional whim or potentially harmful instinct. ”

I’ll post some others soon !

Cheers, Samuel !

PS : Sources : investopedia.com; forexcare.net

This entry was posted on Sunday, August 23rd, 2009 at 11:27 PM and is filed under Advice and Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
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IvyBot Robot Review

Hey There !! During the month of August, I wrote a little scam notice to my readers concerning IvyBot. However, I was still reviewing the product and couldn’t publish the final review. But today here I am, with the final review, and that’s not cute to see…

Here’s what I said In my Scam notice :

“I’m currently reviewing a new expert advisor which has been recently released

as the “new big thing” and which is the IvyBot Robot…

However, “new big thing” seems to mean “new big scam” here…

Indeed, even, if THIS cannot be considered as a final review, it can be considered

as a “notice” which will tell you “hey, would you mind staying away from this

product, until I publish the final review ??”

Okay so I’m not going to be long, as I’m going to expose the facts :

1. Take a look at the product : it is an expert advisor… Do you still think that

robots are working ?? If you do, that’s bad… Do you know a robot sold on the

internet and which is still profitable or which have been profitable for more

than 2 years ? Personally, I don’t.

2. I must admit point 1. wasn’t that fair… Anyway, let’s keep on. So, have you

seen the Sale page ? Big cars, money, the featured thing (you know : “as seen

on BBC, NBC, Forbes, Bloomberg…..), in a word, it smells like a bit of scam here…

3. Now let’s talk about the concrete stuff… I’ve been trying the robot on demo

account for 2 weeks and except one loss, the robot hasn’t opened any position.

I’ve been contacting the support and they answered me to check if the Expert

Advisor button was on, on my metatrader platform just as if I didn’t know that !

I’m keeeping on my review and I should be coming with fresh informations in 2

or 3 weeks, so please, be patient and stay away from this robot !”

Okay so here was the scam notice… I finally tried this product from August 2sd to September 1st and the results aren’t good at all… I opened a $1000 demo account and at the end of the month my balance was up to $1002, with 4 losses and 5 winners. 

The only thing I can say from those results is that IvyBot is not a complete scam… Indeed, my balance isn’t down, I’ve made $2 in one month ! More seriously, the only thing I have to say is that it’s truly not a good product. You can see that by yourself.

Hope it’ll help. 

Cheers. Samuel.

This entry was posted on Friday, September 11th, 2009 at 2:48 PM and is filed under Forex Robot Reviews. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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