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August 2007 | Issue #47

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Where is the DJIA going?

Overview

In this weeks newsletter we will review the DJIA and the trading system described over the last few newsletters.

Review

Newsletter 44 - technical indicators and the DJIA
Newsletter 46 - showing the end of the DJIA uptrend

The DJIA chart

In the following chart below we can see that our conservative approach has paid off. As the uptrend ended (as seen in newsletter 46) we can see a period of consolidation (sideways trend) followed by a false breakout and a violent sell-off.

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Article


The Currency Market

By Joe Gelet, CTA
www.elitefxsystems.com

Is it ironic that the currency market, driver of global trade and finance, without a doubt the most significant market in the world economy and politics, is the least known?  Why is there such a void of information, and why are there so many misnomers regarding currency trading and investing? 

From a traders perspective, the forex market is easier to trade in terms of execution and reporting, market hours (forex is 24/7), leverage (400:1), and ability to implement technical systems.  There are only 8 major currency pairs, which have limited range, and are correlated mathematically.

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