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The folllowing summary is sent to Live Room subscribers, together with the relevant explanation charts.

Afternoon Call – 31st October 2008

- Another productive day in the Live Room today.
- We had 3 Live Calls, all 3 trades making very good profits.
- Our early morning bias towards dollar strength worked out very nicely.
- We had trading opportunities in the Yen crosses just before the Live Room opened.

GBP/USD - Short Call

- Live Room Call: Entry on the break of 1.6213
- Trade: Break of immediate support level on the 15min chart
- 21CCI: Bearish momentum
- Maximum move: 1.6115, (98 pips)
- 1st Level 1.6145, +68 (1/2 position)
- 2nd Level 1.6148, +65 (1/2 position)
- Trade was closed after the pair bounced of the 2nd support level.
- (Allow for few pips slippage on entry/exit levels)

USD/CHF - Long Call

- Live Room Call: Entry on the break of 1.1480
- Trade: Break of immediate resistance level on the 15min chart
- 21CCI: Bullish momentum
- Maximum move: 1.1542, (+62 pips)
- 1st Level 1.1535, +55 (full position)
- Trade was closed after the pair moved lower of the 2nd resistance level.
- (Allow for few pips slippage on entry/exit levels)

USD/CAD - Long Call

- Live Room Call: Entry on the break of 1.2190
- Trade: Breakout of pennant on the 15min chart
- (Alternative entry was the break of 1.2247 resistance level)
- 21CCI: Showing signs of a bullish bias
- Maximum move: 1.2378, (188 pips)
- 1st Level 1.2235, +45 (1/2 position)
- 2nd Level 1.2280, +90 (1/4 position)
- 3rd Level 1.2270, +80 (1/4 position)
- (Allow for few pips slippage on entry/exit levels)

UPDATE - US Session

USD/CHF

- Keep a close eye on the break of the 1.1541 resistance level and the trendline break.
- Possible move towards 1.1657
- Be careful with the news coming out in the US and that it is Friday.

EUR/JPY

- Look for the break of the trendline.
- We have had a strong reversal from the morning lows.
- 200MA is just above the trendline.
- Be careful with the news coming out in the US and that it is Friday.

USD/JPY

- Look for the breakout of the range.
- 99.09 on the upside and 96.41 below.
- Be careful with the news coming out in the US and that it is Friday.

EUR/USD

- Keep an eye on the 15min trendline.
- Overall pressure seems to be on the bearish side but we may get a reaction up.
- Be careful with the news coming out in the US and that it is Friday.

The FTSE closed up 23.46 points at 4,266, whilst the FTSE 250 closed up 234.67 points at 6,223.78, and for those that are interested the FTSE Small Caps closed up 23.92 points at 1,912.27. The miners did well today, with the banks also showing some confidence again. It was a good start on Wall Street too, after some decent US economic data for a change.

Over the pond, by the time London closed the DJI was up 100 points at 9,090, whilst the S&P500 was up 12 points at 942, and the Nasdaq up 19 points at 1,701. Whilst 100 points looks ok, this was well off the session high hit early on. News that the US economy had shrank less than forecast in Q3 helped, as well as the expected imminent interest rate cuts around the world. 

Back here in London, the workers with the black stuff were doing well on the whole, with oil industry support companies doing better.  Hopes of the price stablising were around, but that didn’t help as oil was tarding down 3-bucks again at US$64.50 bbl. But AMEC closed up 62.5p at 493.25p, Petrofac up nearly 50p at 420p, and Wood Group closed up 24.25p at 230.25p. Major oiler RD Shell posted some very good figures, with Q3 profits up 71% at US$10.9bn. The company said it has increased its interim dividend by 11%, but the shares fell back 81p to 1,589p afer some profit-taking.  

On to the miners, some upbeat updates helped the sector. Kazakhmys closed up nearly 33p at 301.25p, whilst Lonmin closed up 44p at 1,120p after both giving decent updates.  Peers followed up, with BHP Billiton closing up 48p at 1,008p after saying that it has ruled out any cash incentive to be added to its all-share US$69bn offer for Rio Tinto. Rio closed up 89p at 2,766p.

On to the banks, where there were some continun-ing smilkes and relief.  RBS closed up 2.8p at 66.8p, whilst HBOS closed up 6p at 94p, and Lloyds TSB up 18.3p at 197.5p. 

Unilever closed down 7p at 1,336p after reporting underlying sales growth of 7.4% in the first nine months with 8.3% in Q3. The operating margin of 24.2% in the quarter was boosted by profits on disposals.

On to pharma giant Astrazeneca, who closed up 127p at 2,550p after announcing Q3 figures much better than expected. 

Advertising group WPP Group closed up 31p at 363.5p despite warning that next year will be very tough and that it may also struggle to meet its 2008 margin targets.

On to house prices, where the news was that UK house prices fell 1.4% in October, which is 0.1% less than the 1.5% fall in September. This year prices are 14.6% lower than last year. Housebuilders didn’t like this news, but hopes of an interest rate cut helped. Barratts closed up nearly 10p at 64p, Bovis Homes up over 17p at 321.25p, and Persimmons closed up nearly 21p at just shy of 272p.

On to leisure, where UK nightclub King Luminar closed down nearly 20p at 160p after announcing a 37% fall in H1 profits. Broker reaction was a 240p target, down from 260p.

Rolls Royce closed up over 26p at 314.25p after reporting it was trading in line with expectations. Broker Numis reiterated its ‘add’ stance and 330p target.

Here’s an update on this morning Live Room & Trades…

Afternoon Call – 30th October 2008

- A very good day in the Live Room today.
- We had 3 Live Calls, 2 trades making very good profits and 1 trade closed out flat.
- After an initial period of consolidation we had some late activity in the session.

EUR/USD - Short Call

- Live Room Call: Entry on the break of 1.3149
- Trade: Breakout of pennant on the 15min chart
- 21CCI: Bearish momentum
- MA: Break of 50MA after breaking through trendline
- Maximum move: 1.3030, (119 pips)
- 1st Level 1.3105, +44 (1/2 position)
- 2nd Level 1.3065, +84 (1/4 position)
- 3rd Level 1.3040, +109 (1/4 position)
- (Allow for few pips slippage on entry/exit levels)

GBP/USD - Short Call

- Live Room Call: Entry on the break of 1.6537
- Trade: Break of trendline on the 15min chart
- 21CCI: Bearish momentum
- MA: Break of 50MA after breaking through trendline
- Maximum move: 1.6425, (112 pips)
- 1st Level 1.6490, +47 (1/2 position)
- 2nd Level 1.6466, +71 (1/4 position)
- 3rd Level 1.6450, +87 (1/4 position)
- (Allow for few pips slippage on entry/exit levels)

USD/CHF - Long Call

- Live Room Call: Entry on the break of 1.1335
- Trade: Break of immediate resistance level on the 15min chart
- 21CCI: Showing signs of a bullish bias
- Maximum move: 1.1357, (22 pips)
- 1st Level 1.1335, +0 (full position)
- Stop: Moved to breakeven when the pair reached 1.1355
- (Allow for few pips slippage on entry/exit levels)

The charts are supplied to subscribers via e-mail.

Here is the e-mail sent today.  A Forex summary like this is sent to subscribers at 6am each morning.

Morning Call – 30th October 2008 (06:25 UK)

EUR/USD

-Low 1.2621, High 1.2990
-The Euro moved higher throughout the European and US session yesterday.
-This morning has seen the pair break through the key resistance level of 1.3000.
-1.3300 and 1.3400 are key resistance levels, we may get a move lower from these levels.
-In the Asian session this morning the pair made a high of 1.3291.
-A break of this sees the pair heading towards 1.3400, 1.3535.
-A move below yesterday’s high of 1.2990 would send prices lower.
-Support levels at 1.2845, 12755.

GBP/USD

-Low 1.5933, High 1.6475
-The Pound has advanced over 600 pips since yesterday’s low of 1.5993.
-There seems to be strong resistance at 1.6605.
-A break above 1.6615-20 region should provide gains towards 1.6682, 1.6770.
-We must observe at these resistance levels (1.6605, 1.6620) for a possible reversal.
-If we see prices moving through 1.6450 we will get a bearish momentum.
-Supports at 1.6310, 1.6200.

USD/JPY

-Low 96.07, High 98.45
-After falling in the Asian session yesterday the pair moved sideways.
-There were some gains of around 100 pips after the Fed announcement.
-A break above the Asian session high of 99.11 would push prices higher.
-There is resistance at 99.66, 100.57.
-We may get moves lower from these levels.
-A move below 97.90 has resistance at 97.40, 96.07 (yesterday’s low).

USD/CHF

-Low 1.1255, High 1.1585
-The USD/CHF finally managed to break out of the trading range of the last few days.
-As long key resistance levels hold we expect further losses in the pair.
-A move above 1.1335 has resistance at 1.1435, 1.1545
-Morning Asian session low is at 1.1209.
-If prices fall below 1.1255 we should see the extension towards 1.1200, 1.1130.

The FTSE closed up a healthy 280.43 points at 4,206.81, whilst the FTSE 250 closed up 289.85 points at 5,989.11, and for those that are interested the FTSE Small Caps closed up 38.17 points better at 1,888.35.  The banks had a good day, as did the miners.

Over the pond, by the time London closed the DJIA was up 76.7 points at 9,141.82, while the S&P500 gained 7 points at 947.51 and the Nasdaq Composite was up 19.39 points at 1,668.86. US stocks were higher in morning trade, after the previous day’s massive rally, with investors anticipating a half-point rate cut from the Federal Reserve and lifted by an unexpected gain in durable goods orders.

Back here in London, the banks had a good day.  RBS closed up some 13%, or 7.2p at 64p, whilst Barclays was up 5%, HBOS up 19.4p at 88p, and KLloyds TSB up 16.7p at 179.2p.  Some big percentage rises in there.

Staying with financials, Norwich Union owner Aviva closed up 65p at 324p, Old Mutual closed up 9p at 48p, The Pru up 47p at 295.25p, and Admiral closed up 53.5p at 922p.

On to the miners, where metal prices firmed. BHP clossed up 117.5p at 960p, Rio up 419p at 2,677p, Anglo American up 238p at 1,379p, and Lonmins up 64p at 1,076p. One negative in the mining sector was Ferrexpo, who closed down 13.5p to just shy of 40p after announcing that the CEO had resigned, adding that annual sales would be 5% to 10% lower than expected. The current share price down to 40p, a far cry from the 450-odd pence in July!

On to the black stuff, where oil gained about 4 or 5 bucks in a day, now trading nearer US$68 bbl. This helped the majors, with BP closing up 44.25p at just shy of 506p, RD Shell clsoing up 180p at 1,670p, and Cairn Energy closing up a decent 142p at 1,346p after am upbeat production update.

On to the High Street, where Marks & Sparks closed up 3.75p at 223.5p, whilst clothing peer next closed up 111p at 1,011p, and Home Retail Group closed up nearly 18p at just over the 2-quid level at 200.75p. Staying with retail, and on to supermarkets, investors were also moving back in. Tesco closed up 13.7p at 332.3p, Sainsburys up 10.75p at 267.5p, and Morrisons closed up 11.75p at 245.5p. All this depite press reports that the UK retailers faced a challenging run-up to Xmas, as the October sales figures for the High Street were down again, according to the Confederation of British Industry.

On to travel, namely bus and coaches, where Stagecoach closed down 13.3p at 192.2p despite a fairly decent udate this morning.

Anyone spreadbetting should note that WorldSpreads seems to be doing well amongst all the doom and gloom. The spreadbet firm closed up 3.5p at 62p after saying that its H1 profits had doubled, and that it is confident of exceeding full year targets.  We suggest you just stay in the Live Room and see the real profitable trades.  Take the cash off them!

Carrying on from this morning in the live room…

Afternoon Call – 29th October 2008 (1pm UK)

- A relatively quite session this morning.
- We had 3 Live Calls, 2 trades closed out at breakeven and 1 with a small loss.
- We were anticipating a mild push through yesterday’s highs on the Euro and Pound.
- This positive move was expected after an initial move lower.
- The focus now is the FOMC rate decision during the US session.
- The futures markets are pricing in a ½% cut to 1.00%, with a 40% chance of a ¾% cut.

GBP/USD – Short Call

- Live Room Call - Entry on the break of 1.6000.
- This was a break of the immediate support line.
- The 50MA was also penetrated above.
- 15min chart, 21 CCI was showing signs of moving towards bearish momentum.
- After the break of 1.6000 the pair made a low of 1.5965. (35 pips)
- After some sideways action we closed the trade at breakeven.
- Initial target area was 1.5950.
- (General room entry was 1.5990-95 and exit 1.5990-95)
- We had given a possible trade entry, in the morning call, on the break of 1.6112.
- The trade hit the first Level target of 1.6220. (+108 pips).
- (This trade occurred just before the Live Room opened).

USD/CAD -Short Call

- Live Room Call - Entry on the break of 1.2680.
- This was a break of this morning’s Asian session low.
- 1 hr and 15min charts, 21 CCI confirmed the bearish momentum.
- After the break of 1.2680 the pair made a low of 1.2622. (+58 pips)
- The stop was moved to breakeven once the pair fell to 1.2640.
- Initial target was 1.2612, after making a low of 1.2622 the pair reversed.
- The trade was closed out at breakeven.
- Unfortunately having been closed out by 5-6 pips the pair made lows of 1.2470.

EUR/JPY - Long Call

- Live Room Call - Partial Entry on break of 124.04 then 124.51.
- 124.04 level was the break of the recent high.
- After the break of 124.51 the pair made a high of 124.73.
- On the break of 124.51 the stop was placed at initial entry level 124.04 region.
- 15min chart, 21 CCI was showing signs of bullish momentum.
- After making a high of 124.73 the trade reversed as was stopped out at 124.04.
- The average loss after partial entries was around 30pips.

GBP/JPY – Breakout trade

- Will be looking for a break out of this pennant on the 15min chart.
- Remember to take quick profits as the markets will be volatile due to FOMC decision.

Obviously the e-mail sent to subscribers has accompnaying charts explaining the set ups etc.

The FTSE was up some 5% this morning, which was expected after the US rally last night.  The FTSE 100 was up over 200 points at 4,130 this morning, which was on top of the nigh-on 2% rise yesterday, but is still down 15% on the month. News from the UK’s financial minister, Alistair ’someone please tell me what to do’ Darling, was that he suggests world governments should adapt their country’s economic policies to help tackle the fall-out from the global financial crisis (as opposed to trying to make it worse, then…?).  Rumours were rife that the UK will be dropping its fiscal rules limiting borrowing levels. The Bank of England policymaker, Tim Besley, said yesterday that the UK economy would weaken further (another obvious statement), adding that interest rate cuts were not a ‘magic bullet’ as consumption might not respond to changes in borrowing costs. (He better shout louder as the US Fed Reserve will need a nudge on that front.  They’ll be down to 1% soon, it looks like.  The dollar presses are working overtime.)

Over the pond last night, a big bounce of 10% was a reaction to further expected interest rate cuts and belief that maybe the bottom was now around, although many felt that there was some massive short positions being closed, which also helped the rise. Wall Street marked its second-best day ever on Tuesday, with the Dow Jones industrial average up 10.9 percent, the S&P 500 up 10.8 percent and the Nasdaq Composite Index  up 9.5 percent.

In the Far East today, the Nikkei 225 closed up 7.7%, whilst in Hong Kong the Hang Seng was up nearly 2%.  Hopes in the Far East were that Japan would be cutting its interest rates later this week, so to follow on from the USA.

Oil was down nearly a buck to US$62 bbl overnight, but was recovering this morning.  Gold was slightly up.

Back here in London, the banks and commodity sectors had some renewed interest, with mining shorts being closed as investors felt the sector was oversold.  the banks had the trough feeders looking for some value too. There is hope that a global central banks interest rate cut will be on the cards again (much to the BoE’s disgust, it may seem). The banks did well on the whole early doors, with the expected 0.5% cut in interest rate cuts in the US expected later today. RBS, Barclays, HSBC< HBOS, Lloyds TSB & Standard Chartered were all up between 3% and 17% this morning.  Healthy rises there.

Staying with financials, namely insurance, The Pru, Norwich Union owner Aviva, Old Mutual and Standard Life were all up between 3.5% and 22% this morning. 
       
Back to the black stuff, where oil pushing back up again saw the oil majors doing ok.  BP was up 6.5% this morning, whilst RD Shell was up 6.3% and BG Group up 10.5% already this morning.

On to the miners, where there was also some demand, with BHP Billiton, Rio Tinto, ENRC, Xstrata, Vedanta and Anglo American all up between 6% and 11% this mornin g.  Some serious rallies there. 

On to the High Street, where Marks & Sparks was up 4.25% this morning, whilst clothing peer Next was up 5%. All this depsite concerns on consumer spending this Xmas, whish is expected to be considerable less than last year.

For those coming in the Live Room today - you’ll be sharing the knowledge of the traders and watching trades as they happen.  Here’s a summary of what we expect could be pairing action this morning:

Morning Call – 29th October 2008 (06:25 UK)

EUR/USD

-Low 1.2324, High 1.2830
-After initial weakness yesterday, the Euro advanced strongly in the US session.
-Strong gains in the stock markets fuelled the rally.
-This morning, in the Asian session, the pair has reversed from its highs.
-We may see some further gains (not a deep correction) but after initial weakness.
-A move above 1.2800 should push prices towards the morning high of 1.2843.
-Resistance overhead is seen at 1.2900, 1.2944, 1.3005.
-On the downside, the break of 1.2670 sees prices moving towards 1.2590.
-Further support at 1.2555, 1.2511, 1.2442

GBP/USD

-Low 1.5397, High 1.6039
-After making a low in the Asian session the Pound gained in the European and US sessions.
-As with the Euro, the Pound advanced strongly in the US session as the stocks rallied.
-We can expect a pullback before any attempt is made to test the previous high.
-Asian high this morning is 1.6112.
-A break of this level would see prices facing resistance at 1.6220, 1.6320
-A move below 1.6000 would see support at 1.5950, 1.5870, 1.5800

USD/JPY

-Low 92.63, High 99.66
-The pair advanced strongly throughout the day yesterday.
-The rally in the Nikkei and possible intervention by BoJ gave support.
-We can expect the pair to give away some gains today after the run yesterday.
-A move above 98.50 sees resistance at 99.01, 99.66, 100.60
-A break of 96.85 see support at 96.00, 95.30 (fib), 94.26 (fib).

USD/CHF

-Low 1.1515, High 1.1657
-The pair is still trading in the range it has been over the last few days.
-Yesterday the USD/CHF saw a trading range of 140 pips.
-A move above 1.1586 see prices move into the consolidation range.
-We expect the pair to have a slight downward bias today.
-A break above 1.1615 would see the pair test yesterday’s high 1.1657 then 1.1713, 1.1749.
-Down below 1.1503 sees support at 1.1483, 1.1460 (fib), 1.1380

Come & Join the Live Room NOW.  See for yourself.

The FTSE 100 closed up 68.69 points at 3,921.28, whilst the FTSE 250 closed down 7.51 points at 5,698.18, and for those that are interested the FTSE Small Caps closed down 7.1 points at 1,844.81. Headline shares closed the session firmer, but off early highs, driven by financial issues as Aviva and Standard Chartered moved to the top of the leaderboard, and following a strong start to trading on Wall Street.

Over the pond, by the time London closed the DJI was up 204 points at 8,380, whilst the S&P500 was up 17 points at 866,. and the Nasdaq up 20 mpoints at 1,526. Trough feeders were out in force.

Back here in London, oil major BP closed up 23.5p at 461.5p after annoucing record profits for its 3rd quarter, which were up nigh on 150% on last time out at some £10 bln.  Blimey.  Peers liked the news, with RD Shell closing up 94p at 1,490p and BG Group up 46.5p at 710.5p. Staying with the black stuff, the price of oil was fairly steady at US$63 bbl.

On to the miners, where a decent start to the day tailed off, with most falling back later in the session. The Kazakh miners were said to be cutting production due to demand fears, resulting in share prices peeling back. ENRC closed down 36p at 270p, whilst national peer Kazakhmys closaed down 7.5p at 233p.  Lonmin closed down 75p at 1,012p and Anglo American closed down 65p at 1,141p.

On to the banks, where Asian biased Standard Chartered had a good day, closing up 20p at 7-quid after saying in its interim statment that it continues to make good progress during the Q3 this year.  Peers didn’t do so well, with RBS closing down 0.4p at 56.8p, Barclays down 11.4p to 180p, and Lloyds TSB closing down 7.4p at 162.5p. HBOS did better, though, closing up 7.6p at 68.6p.

Staying with financials, insurance giant and Norwich Union owner Aviva closed up almost 14p at 259p after announcing some decent sales figures which were better than expected. Peers were mixed, with Admiral closing up 75.5p at 868.5p, Royal Sun Alliance cloising up 9.4p at 132.9p, but The Pru closing down over 28p at 248.25p.

On to the High Street, where retailers felt some pressure on the back of financial worries and concerns on spending. Marks & Sparks closed down 4.5p at just shy of 220p, whilst even supermarket King Tesco felt pressure, closing down 15p at 318.6p

On to travel, where bus and train operator Arriva announced a fairly upbeat statment helping the shares close up 14p at 590.5p. Peers also did well, with National Express closing up 8.5p at 560.5p, FirstGroup up 4.25p at 419.25p, Go-Ahead up 49p at 1,462p, and Stagecoach closed up 9.1p at 205.5p. 

ARM Holdings closed up 17p to 97.5p after announcing a 17% rise in profit for Q3, which was better than expected, adding that US revenue in Q4 will also be at least at expectations.

For those in the Live Room this morning.  Here is a summary and update:
Afternoon Call – 28th October 2008 (1pm UK)
- A quiet day compared to the previous trading sessions, but a positive one.
- We had 2 Live Calls, 1 made decent profit and 1 was a small tiring loss.
- Our general morning view was a slight dollar weakness.
- We expect the volatility to continue over the coming sessions.

- There maybe dollar highs before the deep correction takes place.
- The Dollar has weakened against the European pairs prior to the US session.
- Yen has also given up some recent strong gains as the Asian stock markets rallied.
- There is focus now to see if the Dollar has made a short term top.
- Similarly, whether the USD/JPY and the yen crosses have made short term bottoms.

GBP/USD - Short Call

- Live Room Call - Entry on the break of 1.5604.
- This was a break of a support level that was also used yesterday for an entry.
- 15min chart, 21 CCI was showing signs of moving towards bearish momentum.
- Subsequent break of the 50MA confirmed the downward move.
- After the break of 1.5604 the pair made a low of 1.5476. (128 pips)
- Half the position was closed at the down sloping Trendline.
- 1st Level 1.5525, +79 pips, 2nd Level 1.5604, +0
- After the first partial profit was taken the trade stopped out at breakeven.
- (Most of the people entered 1.5590-1.5600 region and exited 1.5525 and below)

USD/CHF - Long Call
- Live Room Call - Entry on the break of 1.1618.
- This was a break on the upper channel line of a recent trading range.
- The levels being observed were 1.1618 and 1.1553.
- Break of 1.1618 was confirmed by 21 CCI on the 15min chart.
- The trade made no real thrust upwards, making a high of 1.1649. (31 pips)
- The pair sold of and the trade was stopped out at 1.1600 (below 200MA).
- Trade resulted in a 25-30 pips loss.
- (General room entry was 1.1625 and exit 1.1595-1.1600)

USDCAD - Short Call

- Early morning setup - Entry on the break of trendline, 1.2890 (close of bar)
- The break of the trendline was anticipated after the break of the 50MA.
- 21 CCI was already showing a bearish momentum.
- Unfortunately, the break occurred just few minutes prior to the live session.
- Entry level was 1.2890, with the pair making a low of 1.2816. (74 pips)
- Partial profits were taken at the first support line that was indicated.
- 1st Level 1.2825,+65 pips, 2nd Level 1.2890, +0.
- After the first partial profit was taken the trade stopped out at breakeven.