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Daily note from the Desk:
July, historically, is the low point in the year for the number of Signals that the market produces, due in part to the move from Consolidation to Distribution that takes place ahead of the August equity bull run that invariably has it as the third best month of the year to hold stocks (Schwartz Stock Market Handbook).
In this phase of trade the opportunities tend to be hard sought, but are more than made up for in the upcoming five month period. The down side of August trade is that on the rare occasions that equity markets go lower, they go lower in a big way.
That is not an issue for forex trade, we just need to know whether we are buying dollars on a weak set of equity moves, or selling dollars on strong equity trade. TheLFB historically produces two Signals a day, over and above the twenty long and short trade plan numbers produced each day. In July that tends to drop down to around one a day on average, with a build up in signal flow coming in the last week of the month.
We are so well placed right now to look at increased Signal flows, following a very productive pattern of trade that has stood us in good stead for nearly thirty years now, and in anticipation of order flow and trade increases as August develops.
"Traders were born with two ears, and one mouth. Ever noticed how the very successful stories come from traders who quickly learned to use them in proportion?
Those who Can; do it. Those who Can't; talk about doing it. One mouth, two ears, use them in proportion."