THE MAGIC TRADING PORTFOLIO: ***Saturday October 25*** CFTC COT Report Data 10/21/14 -> $USDCAD Bullish, $USDJPY less Bullish ***PORTFOLIO -> ***REVIEW ->

General Notes:

The CFTC COT report came out again on Friday with October 21rst's data. What we find is that institutions are more bullish the $USDCAD, the same standing on every other currency pair but becoming less bullish on the $USDJPY. See the charts below for my thoughts and for Institutional Supply & Demand. There has been a lot of new subscribers to the blog, so welcome, I know you'll find this portfolio blog to be most helpful in planning your own trades. I spend hours looking for supply and demand and plot it all out here for you. What you do with it is up to you. I alert my trades through @magicalerts on twitter for educational reasons only.

Market Movers October 26th - 31rst:
Click here for the Week Ahead -> Oct 27 - 31, 2014 Market Movers

The Magic Trading Portfolio's Position Sizing:

Currencies --> Risking only $100 per trade. As my risk tolerance gets larger, I will slowly start increasing my risk amount. This is how you become a consistently profitable trader.

You can follow, learn & PROFIT from The Magic Portfolio by following the members only @MagicAlerts on Twitter. I'll be sharing my thoughts on the markets, providing video lessons on trading Supply & Demand and also be sharing with followers some very exclusive stuff. You'll have to follow to find out what. I am mapping out Institutional Demand & Supply. Do your own DD and use the info whatever way you see fit. Welcome to The Magic Trading Portfolio!

How to keep updated with the blog? I tweet updates to The Magic Trading Portfolio all day live, my advice is if you have an iphone etc, turn notifications on for my account @magikev to get the updates to the portfolio. If you missed an update, just come to the blog and check on the right side where the twitter feed is located and go through the feed to see what updates you may have missed. Otherwise, subscribe to the email updates and receive them in your inbox.

Magic Ingredient:
If there is any one thing that has added more to my success than anything else, it is understanding how important it is to time the market with your trades. The key to my strategy is to time the $USD's GREEN and RED zones with the GREEN and RED zones from the setups. If the US Dollar and the $USDCAD, $USDCHF or $USDJPY are both entering their same coloured zones at around the same time or if the US Dollar and the $EURUSD, $GBPUSD, $AUDUSD or $NZDUSD are both entering the opposite coloured zones then the probability of the setup working out is highest.
SHADED GREEN ZONES = Strong Buy Zones

SHADED RED ZONES = Strong Sell Zones

Markets Overview (The Big Picture):

Take note of the GREEN demand zones and RED supply zones mapped out below. These are the areas of interest for me because this is where there is a great deal of demand to fill buy orders and supply to fill sell orders from the institutions.

$USD Overview (Weekly Chart)
Perception of Monetary Standing: HAWKISH => NUETRAL
--> $USD could drop to the weekly demand zone at 84ish.

$USD Overview (Daily Chart)

--> We could be seeing more downside on the USD this week. RSI on this last move up showing below 60, meaning further downside is to be expected.

Currencies:

The Million Dollar Strategy:

Chart Setup --> Chart has an 89 period EMA and an 8 period EMA, RSI indicator of 60 overbought and 40 oversold.

Buying or Selling when price enters a 240 minute area of demand/supply outlined by the green zone/red zone. First target will be opposing 240 min supply zone/demand zone and the opposing daily or weekly supply zone/demand zone.

Perception of Monetary Standing (courtesy of DailyFX):

$USDCAD -> Commitment Of Traders Report: Institutional traders are LONG biased. (10/21/14)

Decreased <== LONG -> 50k SHORT -> 28K ==> Decreased

Perception of Monetary Standing: DOVISH
Notes: Weekly supply has been hit and seems to be getting weaker. Idea is that price will break up to new highs and head to weekly supply at 1.16000.

THE SETUP ==>

$AUDUSD -> Commitment Of Traders Report: Institutional traders are VERY SHORT biased. (10/21/14)

Decreased <== LONG -> 13k SHORT -> 45K ==> Increased

Perception of Monetary Standing: DOVISH
Notes: The Aussie hit weekly demand that is not authentic but fresh so this level should not hold, it rallied up into daily supply and is now dropping. Price should drop and break through the weekly demand zone area and head to at least daily demand at 0.84000.

THE SETUP ==>

$USDCHF -> Commitment Of Traders Report: Institutional traders are LONG biased. (10/21/14)

Decreased <== LONG -> 25k SHORT -> 7K ==> Decreased

Perception of Monetary Standing: NUETRAL
Notes: Fresh weekly supply is at 1.00950 and price hit fresh but not authentic daily supply so would expect price to continue higher. Just hit some daily demand and should be heading higher.

THE SETUP ==>

$EURUSD -> Commitment Of Traders Report: Institutional traders are VERY SHORT biased. (10/21/14)

Same <== LONG -> 60k SHORT -> 219K ==> Increased

Perception of Monetary Standing: DOVISH
Notes: Weekly RBR demand hit and price went higher towards daily/weekly supply. Seems to want back down. Next stop 240 demand at 1.24614.

THE SETUP ==>

$GBPUSD -> Commitment Of Traders Report: Institutional traders are SHORT biased. (10/21/14)

Decreased <== LONG -> 36k SHORT -> 41K ==> Decreased

Perception of Monetary Standing: HAWKISH => NEUTRAL
Notes: Might see more upside on the Pound, as it hit Monthly/Weekly/Daily demand zones.

THE SETUP ==>

$USDJPY -> Commitment Of Traders Report: Institutional traders are LONG biased. (10/21/14)
Decreased <== LONG -> 98k SHORT -> 26K ==> Decreased
Perception of Monetary Standing: DOVISH
Notes: Hit some weekly supply and dropped and hit daily demand, will see more upside if good $USD data comes out.

THE SETUP ==>