// March 02, 2011 // EUR/USD Trend, GBP/JPY Counter-Trend?

QuickView of What’s Happening The Wallaby Book i s Coming Soon

Risk Disclaimer (read first) …………..……… Page 2

EUR/USD at new highs (4HR) ………………… Page 3

EUR/USD correction possible? (15M) ……… Page 4

NZD/USD ready to advance? (4HR) ………… Page 5

GBP/JPY plans for a buy (4HR) ……… ……… Page 6

GBP/CHF at crossroads (4HR) …………………Page 7

AUD/CAD ready for a fall? (4HR) …… ……… Page 8

What is the Wallaby?

The currency market didn’t wait until Friday to start moving

again. On Friday, the jobs report should provide an extra
boost to the dominant EUR/USD trend. It’s hard to argue
with price (although we all try sometimes): the EUR/USD
wants to go up, and it keeps doing it. Today we’ll look at the
current trend outlook and then some counter-trend moves
on the GBP/CHF and GBP/JPY.
Wallaby Trading is counter-t rend trading. For trend-traders, that
means that the Wallaby is a method for watching for a pullback on a
short-term chart to trade wit h the longer-term trend. For straight-up
contrarians, the Wallaby trade is a step-by -step guide through the
world of trading divergence and looking for peaks and valleys in price
movement. The book is at the printer. It’s coming soon.

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Rob Booker’s Market Notes | February 24, 2011 | Rob.bz (blog), RobBooker.com (fr ee ebooks + managed accounts), @robbiebooker
Trading involves substantial risk of loss. Past performance is not necessarily indicative of future results.
This is not a trade recommendation and is provided for informational purposes only.

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 Risk Disclosure
Trading foreign exchange on margin carries a high level of
risk, and may not be suitable for all investors. The high
degree of leverage can work against you as well as for you.
Before deciding to trade foreign exchange you should
carefully consider your investment objectives, level of
experience, and risk appetite. The possibility exists that you
could sustain a loss of some or all of your initial investment
and therefore you should not invest money that you cannot
afford to lose. You should be aware of all the risks
associated with foreign exchange trading, and seek advice
from an independent financial advisor if you have any
doubts.
Not A Trade Recommendation
Nothing in this document should be int erpreted as a trade
recommendation. It should not be relied upon for the purpose of making
an investment decision for your own account, or to invest in for Rob’s
managed account service. You must read and sign a full (regulat ed)
disclosure document before investing. Any results listed in this morning
notes document are hypothetical in nat ure, unless specifically noted
otherwise, and Rob does not take every trade idea that is listed herein.
These notes are part of Rob’s daily preparation for trading and are
provided to you for informational purposes only.
Rob Booker’s Market Notes | February 24, 2011 | Rob.bz (blog), RobBooker.com (fr ee ebooks + managed accounts), @robbiebooker
Trading involves substantial risk of loss. Past performance is not necessarily indicative of future results.
This is not a trade recommendation and is provided for informational purposes only.
Hypothetical Resul ts:
HYPOTHE TICAL PERFORMANCE RES ULTS HAVE MANY
INHE RENT LIMITA TIONS, SOME OF WHICH A RE DESCRIBED
BELOW. NO REPRESE NTA TION IS BEING MADE THA T ANY
ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR
LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE
FREQUENTLY SHARP DIFFERE NCES BE TWEEN
HYPOTHE TICAL PERFORMANCE RES ULTS AND THE ACTUA L
RESULTS SUBSEQUE NTLY ACHIEVED BY ANY PARTICULAR
TRADING PROGRAM.
ONE OF THE LIMITA TIONS OF HYPOTHE TICAL PERFORMANCE
RESULTS IS THA T THEY ARE GENE RALLY PREPARE D WITH
THE BENEFIT OF HINDS IGHT. IN ADDITION, HYPOTHE TICAL
TRADING DOES NOT INV OLVE FINA NCIAL RISK, AND NO
HYPOTHE TICAL TRADING RE CORD CAN COMP LE TELY
ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL
TRADING. FOR E XAMPLE, THE ABILITY TO WITHS TAND
LOSSES OR TO A DHE RE TO A PARTICULA R TRA DING
PROGRAM IN SPITE OF TRADING LOSSES ARE MATE RIAL
POINTS WHICH CAN ALS O ADVERSE LY AFFECT ACTUAL
TRADING RES ULTS. THE RE ARE NUME ROUS OTHE R
FACTORS RELA TE D TO THE MARKE TS IN GENE RAL OR TO
THE IMP LEMENTA TION OF ANY SPECIFIC TRA DING P ROGRAM
WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE
PREPARA TION OF HYPOTHE TICAL PERFORMA NCE RESULTS
AND ALL OF WHICH CA N ADVERSELY AFFE CT ACTUAL
TRADING RES ULTS.
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 EUR/USD
: LT 4 Hour: New Highs, Now 1.3900 in View
Number 38 went unused in the National
Basketball Association this year, but the
EUR/USD wore this number out. We’ve
seen the 1.3800s for so long it almost
seems like we’ll never leave it.

The break above 1.3862 puts 1.3900 into

view. Right now it’s an all out battle as
short-term charts are really
overextended, but the big picture simply
says “Go.”

The Fed started POMO (Quantitative

Easing) after the pair had already broken
the highs. Fears of unrest in the Middle
East went on the backburner.

It’s now a battle: Fed money versus

Reality. My guess is that Fed money wins.
There probably aren’t fundamentals to
justify a strong EUR/USD, but the Fed is
just pumping too much money into the
system. It’s a tough fight.

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Rob Booker’s Market Notes | February 24, 2011 | Rob.bz (blog), RobBooker.com (fr ee ebooks + managed accounts), @robbiebooker
Trading involves substantial risk of loss. Past performance is not necessarily indicative of future results.
This is not a trade recommendation and is provided for informational purposes only.  Previous Page | Next Page 
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EUR/USD 15M: A Convoluted Trend Resumption
You can’t keep this pair down. Everytime
you think it’s going to cross the 1.3750
threshold – and stay there – it turns and
races back to 1.3800. Last night’s climb
was the steepest/fastest yet.

I’ve circled the moving averages on the

chart, to note that the pair has re-
entered the Phoenix Phase (part of the
Arizona Rules for those of you who
remember). That’s the trending phase of
the market. Some notes to counter the
bullish view from the first chart on Page
2:

- Sometimes a pair will re-enter the

trending phase for a very short
period of time
- The pair has been away from the 800
SMA for 640+ candles, which is
reason to believe we could see a
drop back down
- Any push to 1.3900 will be preceeded
by at least a pullback to 1.3865-70.

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Rob Booker’s Market Notes | February 24, 2011 | Rob.bz (blog), RobBooker.com (fr ee ebooks + managed accounts), @robbiebooker
Trading involves substantial risk of loss. Past performance is not necessarily indicative of future results.
This is not a trade recommendation and is provided for informational purposes only.  Previous Page | Next Page 
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 NZD/USD 4 HR: Warlock Defeated! Pair Retreats, Readies for Advance?
The NZD has all sorts of missed pivots all
over the place. Plenty of targets for
whenever it decides to show up. Which,
from the looks of it, could be soon – that
huge candle shook out a lot of traders…

…who would be really annoyed to see

this pair jump 300 pips following their
stop out last night.

The NFP is the next big influencer of

movement on this pair. I think .7487 is
the most doable target on a buy trade –
but I wouldn’t start buying until we’ve
crossed into the lower pink buy zone on
the chart.

If this pair breaks the lows, then I’ll

reassess this point of view. As before, I’m
watching this pair and not planning any
trades on it for my own account. I’ll let
you know if I change my mind about that.

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Rob Booker’s Market Notes | February 24, 2011 | Rob.bz (blog), RobBooker.com (fr ee ebooks + managed accounts), @robbiebooker
Trading involves substantial risk of loss. Past performance is not necessarily indicative of future results.
This is not a trade recommendation and is provided for informational purposes only.  Previous Page | Next Page 
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GBP/JPY 4 HR: Breaking Even is Hard to Do
I bought this pair overnight and when it
reached 30 pips profit, I moved the stop
to break even. Ended with zero. But I’m
not done here with this pair. A move to
133.00 or better 132.00 is what I’d like.

And at that level – especially the 132.60

area, where you see those two missed
pivots circled on the chart – I’d be a
buyer. At least that’s the plan right now.

It’s not a sure thing that it can drop back

that far. If it does not, then I’ll go back to
the charts and start planning a different
area for a buy. As noted in previous chart
books, I’m bullish on this pair in 2011,
and I think that fair value for it is closer to
145.00, even 150.00. That seems far
away now, but it’s really not.

The bearish view starts for me if it drops

below the 130.00 mark. Then who knows
what. 125? Sheez!

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Rob Booker’s Market Notes | February 24, 2011 | Rob.bz (blog), RobBooker.com (fr ee ebooks + managed accounts), @robbiebooker
Trading involves substantial risk of loss. Past performance is not necessarily indicative of future results.
 Previous Page | Next Page 
This is not a trade recommendation and is provided for informational purposes only.
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 GBP/CHF 4 HR: Waiting for a Drop to 1.5000
As noted yesterday, it’s common to see
this pair fall back down before it starts
another leg upward in a correction.
That’s because you have overcommitted
bears who will protect their trades…

…By selling on the rallies. And that’s what

happened here overnight: Bears got hold
of the 1.5170 mark and sold the heck out
of it. My assumption is that they’re trying
to push this pair to new lows, but that’s
going to take a lot of work.
Yesterday’s Chart
I’d be very surprised to see this pair
break below 1.4880 before Friday’s job
report.

I’m still looking for a buy trade if the pair

can drop back to the 1.5000 area and
create a reversal pattern on a short time
frame chart. I’ll keep you updated on the
Twitter stream when I see something I
like.

Page | 7
Rob Booker’s Market Notes | February 24, 2011 | Rob.bz (blog), RobBooker.com (fr ee ebooks + managed accounts), @robbiebooker
Trading involves substantial risk of loss. Past performance is not necessarily indicative of future results.
 Previous Page | Next Page 
This is not a trade recommendation and is provided for informational purposes only.
Home Page
AUD/CAD 4 Hour: A Messy Sell Zone Ahead?
I’ve never meet anyone who trades this
pair. But there’s no better way to finish
off our view of today’s market, than with
a look at a pair that seems poised for a
move downward…

…The pair lacks any missed pivots on the

upside. It went back and tagged whatever
it needed to visit.

It has repeatedly pounded on the door of

.9830. If it gets a foot in the door, then it
enters the pink-colored “Messy Sell
Zone,” where bulls start to buy on the
dip, but then start to panic, and then
sellers come into view. When this pair

If not – if we go another round of

quantitative easing – then this pair is
toast. 77-75 come into view. This entire
drama can play out quickly on news, but
otherwise it’s trench warfare and should
be enjoyable to watch from the sidelines.

Page | 8
Rob Booker’s Market Notes | February 24, 2011 | Rob.bz (blog), RobBooker.com (fr ee ebooks + managed accounts), @robbiebooker
Trading involves substantial risk of loss. Past performance is not necessarily indicative of future results.
This is not a trade recommendation and is provided for informational purposes only.  Previous Page
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