February Performance Newsletter
The month of February took us by surprise as the Forex markets gave us a glimpse of the “Good Old Days” of trading. During the month of February the Federal Reserve rate cuts gave some relief to the credit crisis woes, which surprisingly gave some boost back to the Dollar. Yet, the boost couldn’t beat the consequence of lower rates which is a devaluation of the currency. The Dollar value loss in the last two weeks of the month sent the Euro hitting another all-time high against the US Dollar above the 1.5000 mark. In February we also saw the economic stimulus package passed by Congress has given some direction to traders, but more importantly, stability and foresight of what can be expected in the future. As for our trading strategies, we still were very timid on the On Target Trading System due to the wild moves of recent months past, however this strategy did very well with the given trends. February was the first time in four months that we saw multiple 3-wave moves, back-to-back, on most currencies. Of course the big winner this last month was the Premier strategy. With the switch of trend directions on the EUR/JPY and AUD/CAD within the suggested portfolio, this strategy added consistent returns in our accounts*.

The EurAsia account was very flat this month as the time of day trading was key. There were many opportunities to catch the runs on this strategy, however, the times our traders were trading seemed to catch more of the flat times then those that run. Traditionally, the Asian sessions and European sessions are the best to trade, however, most of the action found in February was during the US trading session. The account realized a small loss, but there are still a lot of opportunities to catch the waves to bring this account back strong this next month.

The overall consensus by traders is that the future is still unknown, but traders felt okay with that trading, therefore, yielding smooth price fluctuations. The concerns moving forward are still the weak US Dollar and also the questions if the US economy is really moving into recession or not. Most traders are trading based on the fact that we are already in recession, however, traders are looking for a bottom on the Dollar to catch a classic “Dead catch bounce.”

March Outlook

The spring into the summer are always the best trading months to trade. Usually by march the big players in the Forex have their yearly game plan in play and markets seem to trend better during the months of March to June. From what we saw in February we are excited to jump into the month of March. The key fundamental factors this month will be the cost of oil as it has just recently hit an all-time high this last week - over $104 per barrel. In addition, many commodities have taken huge jumps in the last 10 days, namely wheat that jumped over 300% in cost this last month. The higher costs of commodities will put more pressure on the Dollar which has already been pushed into all-time lows. The unwind of the carry trade is now being overshadowed with economic strength which is allowing currencies like the New Zealand, Australian, & Canadian Dollar holding strong. This should be a fun trading month!

February Returns

Withdrawal Funds

The Premier Account did quite well this last month up 14.0% in the Aggressive account. As mentioned above, we expect things to consolidate for the first week or two on this strategy and this would be a good time to pull profits if needed. To withdraw funds please log in to your account and select “Manage” and on that page you will see your options for withdrawing funds. Click here to login.

 To learn more about our managed accounts, please call us at 1-800-557-9776.