Table of Contents: FOREX BROTHERHOOD DAILY HOT REPORTS

© 2008, Jason Alan Jankovsky, Core Financial Group, Inc., forexbrotherhood.com

COMMENTS 1

GBP / USD 2 Date: Thursday, October 02, 2008 7:15 AM CDT (-5 GMT)
EURO / USD 3
USD / JPY 4
Overnight Asia/Europe
USD / CHF 5 • Senate passes Tarp 75-24
USD / CAD 6 • USD rallies on expectations house will follow
• Traders report only average volumes and stops active
News and
Events 7 Today’s Economic Reports
All times EASTERN (-4 GMT)

Announcements:
• 8:30am USD Unemployment Claims
Coming Soon!! • 10:00am USD Factory Orders m/m
RSS feeds for up-to- • 10:35am USD Natural Gas Storage
the-minute market
news and trades Looking Ahead to Friday
direct to your All times EASTERN (-4 GMT)
desktop!

Personal • 8:30am USD Non-Farm Employment Change

Appearance! • 8:30am USD Unemployment Rate
• 8:30am USD Average Hourly Earnings m/m
Coming soon! • 10:00am USD ISM Non-Manufacturing PMI

USD higher, Senate passes TARP, volumes average

Continued on Page 7

The USD started Asia a bit
two-way holding around the
New York close until news
that the US Senate passed
the TARP bailout bill. Initial
reaction by the Greenback
was as expected with the
USD rising briefly in a knee
jerk reaction before a case of
Jason’s Latest Book “buy the rumor/sell the fact”
“Trading Rules that Work” sentiment drew aggressive
an Amazon Top 100 USD sellers; most of the
under futures pairs making highs on the
Get Your Copy day after the news in Asia.
Sentiment that the US House
will pass the TARP bill
quickly inspired another
round of USD buying lifting
the Greenback to the best
levels of the day in early
Europe. GBP fell to a 1.7606
low print as traders saw
stops and short-term selling
push the rate near the 2008
lows. Traders note that
volumes were average and
the rate appears to be
tracking EURO lower rather
than leading the decline.
EURO fell to a new Sept. low
at 1.3854 on stops and short-
term selling as well; traders
note that EURO has had
more selling interest due to
the perception that Europe
has an equal or greater
liquidity problem than the US.
Although the problem of
liquidity is a global issue it is
unlikely that the liquidity
issue is as severe in the
Eurozone as current
perceptions suggest; ECB
rhetoric and actions clearly
show that the ECB is
responsive to needs and not
trying to head off a crisis.
The only banks under threat

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 GBP / USD

© 2008 Genesis Financial Technologies, all rights reserved, used with permission.

GBP/USD Daily Other Things to Watch/Open Trades/News

Resistance 3: 1.8180 10-02-08 BUY GBP/USD 1.7660 OB Stops @ 1.7560

Resistance 2: 1.8050
Resistance 1: 1.7880 Rate drops through several layers of support; at the buy
point now.
Latest New York: 1.7677
Support 1: 1.7630
Support 2: 1.7580
Support 3: 1.7550

Comments

Despite massive sell-off the rate holds above Sept. lows and appears to be heavily over-sold.
Follow-on selling likely to attract short-covering around the double-bottom lows for Sept. US
news started the move no doubt but traders say light volumes may be exaggerating the
move. Aggressive traders can buy this dip; look for a recovery back to the 1.8600 handle
near term. Two-way action likely near-term; heavy focus on bailout plan. Possible sovereign
interest on the dip as semi-officials seen on dips in both EURO and GBP recently. Some
stops triggered along with active selling by model accounts traders say. Major support has
held for two weeks now, any weakness likely to be bought hard. Profit-taking bids continue
as well. OK to buy any time in my view.

Data due Friday: All times EASTERN (-4 GMT)

4:30am GBP Services PMI

4:30am GBP Housing Equity Withdrawal q/q

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 EURO / USD

© 2008 Genesis Financial Technologies, all rights reserved, used with permission.

EURO/USD Daily Other Things to Watch/Open Trades/News

Resistance 3: 1.4420 10-01-08 LONG EURO/USD 1.4020 stops @ 1.3920

Resistance 2: 1.4380 10-02-08 STOPPED OUT OVERNIGHT
Resistance 1: 1.4330
This dip under the 1.4300 handle is the buy zone in my
Latest New York: 1.3895 view; OK to look for a buy point the next few days.
Support 1: 1.3850
Support 2: 1.3800/10
Support 3: 1.3720/30
Comments

Rate drops to two-year 50% fib defense at 1.3850; rate is an absolute screaming buy despite
getting stopped out overnight. Aggressive traders can buy anytime under the 1.3900 handle
in my view. Traders note stops building above the market but those likely remain out of
range today. Support at the 1.4330 area fails hard suggesting a point of resistance on the
recovery, traders report semi-officials names on the bid. Expect more two-way action with
upside bias; traders note the rate is firm on dips so far despite the uncertainty in the market.
Traders suggesting that the rate is continuing to trade technically. Expect a solid higher
close for the week. If long, look to add to positions on any weakness. Likely a dip back to the
1.4000 handle will offer a solid buy opportunity. Expect huge volatility if TARP fails to pass
the house.

Data due Friday: All times EASTERN (-4 GMT)

All Day EUR Holiday: German Unity Day

4:00am EUR Final Services PMI
5:00am EUR Retail Sales m/m

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 USD / JPY

© 2008 Genesis Financial Technologies, all rights reserved, used with permission.

USD/JPY Daily Other Things to Watch/Open Trades/News

Resistance 3: 107.80
Resistance 2: 107.40/50 10-01-08 SELL USD/JPY 106.20 OB Stops @ 107.20
Resistance 1: 107.00 Looking to ADD to position on a close under the 104.50
Latest New York: 105.34 area.
Support 1: 104.40/50
Support 2: 103.80
Support 3: 103.40/50
Comments

OK to continue selling the rate near-term, upside resistance is huge at this level; rate is
heavily bid but it is really not attracting large names traders say. Rate remains two-way with
upside capped and support at 103.50 solid; resistance is huge above the 106.50 area as rate
falls back after attempting a high. Rate is two-way but sellers appear on rallies, traders note
strong offers on the approach to 106.30 or slightly higher; aggressive traders can sell any
strength to the 107.00 handle. Traders note stops likely both ways resulting in two-way action.
Stops cleared to the upside now that bailout is likely to pass soon. Likely more downside to
end the week but expect this bounce to hold for a bit; lots of late bids possible. Cross-
spreading likely to pressure USD. Upside resistance remains formidable. Aggressive traders
can look to add to open shorts again on any rally. Equities continue to help or hinder
depending on the day; weak rally is a selling opp in my view.

Data due Friday: All times EASTERN (-4 GMT)

NONE

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USD / CHF

© 2008 Genesis Financial Technologies, all rights reserved, used with permission.

USD/CHF Daily Other Things to Watch/Open Trades/News

Resistance 3: 1.1400/10 10-01-08 SELL USD/CHF 1.1200 Stops @ 1.1300

Resistance 2: 1.1380 10-02-08 STOPPED OUT OVERNIGHT
Resistance 1: 1.1340/50
Latest New York: 1.1318 Additional strength to the 1.1350 area a potential sell.
Support 1: 1.0880
Support 2: 1.0800
Support 3: 1.0720/30

Comments

Rate makes one more try for highs and is holding under the 1.1350 area; stopped out on
early shorts—ok to try again above the 1.1340/50 area if we get it. Former resistance at
1.1080 area will likely act as support on a retracement so expect more two-way action.
Traders note lower volume. Aggressive traders can sell rallies anytime in my view. Failure at
the highs confirmed and any rally is a sell in my view. Pullbacks have been sold heavily so
expect a secure top this time. High-volume break the past several sessions is a confirm the
top is in. Longs will roll stops higher. Late longs likely to have stops rolled up in-range and
whipsaw possible. If Rate falls back under the 1.0880 area after 1.1300 handle fails on this
volatility suggests rate has a lot more downside potential developing; need a sharp break
back to again feel for the top.

Data due Friday: All times EASTERN (-4 GMT)

1:45am CHF CPI m/m

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USD / CAD

© 2008 Genesis Financial Technologies, all rights reserved, used with permission.

USD/CAD Daily Other Things to Watch/Open Trades/News

Resistance 3: 1.0720/30
Resistance 2: 1.0700 Currently flat—looking to sell a rally.
Resistance 1: 1.0680
Latest New York: 1.0656
Support 1: 1.0550 1.0700 area is SOLID resistance in my view;
aggressive traders can sell into the rally above the
Support 2: 1.0500
1.0660 area.
Support 3: 1.0440

Comments

Rate blasts through resistance to hold back at sell-zone; likely to rotate lower if the USD
whipsaws because this rate is likely only following along for the ride and not building a base.
Former resistance at 1.0550 area will act as support so expect stops under the 1.0550 area
on the way down. The top remains solid in my view; but upside resistance continues to
solidify above the 1.0550 area now. Today’s bounce to that area would be a great sell. Pivot
area 105.50 very important now and expect offers ahead with stops behind. New lows on the
week late last week suggest momentum is beginning to test outside current ranges. The
longs likely to quit on a weekly close under 1.0400 I think. Stops likely under the 1.0280/90
area today but out of range so far. Rally has spooked a lot of shorts no doubt.

Data due Friday: All times EASTERN (-4 GMT)

NONE

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USD higher, cont.
in the Eurozone are those
with heavy exposure to US
mortgage-backed securities;
everyone else has no issue
and I think that makes the
Eurozone more stable
through this crisis. Lagging
the complex and lower on the
day is USD/JPY; low prints at
105.21 in late Europe.
Traders note that cross-
spreaders for non-USD pairs
are keeping the pressure on
USD/JPY as the Yen gains
across the board. Importers
were seen on the lows but
stops were as expected at
105.50 along with active
selling. Traders suspect that
the USD/JPY will continue
lower despite USD strength
elsewhere as technically the
rate is lagging considerably
from other pairs. The Yen
remains firm against EURO
and Sterling which will
continue to pressure USD
near-term. Equities lower and
…continued from page 1
Oil higher will likely keep the is to lower rates and print
USD/JPY under pressure as money. That can only be
well. In my view, the USD bearish for the USD long-
has extended its upside back term.
to the extreme ranges seen
early in the month in
response to the potential
passing of the TARP plan
and nothing else. Once this
euphoria blows over the USD
will likely resume its
downtrend as the only way to
pay for this plan at the same
time the US is in a recession

Today’s Quote:
“A strong conviction that something must be done is the parent of many bad
measures.”
Daniel Webster

The recent talk that
“something must be done”
to stem the negative tide
in the US financial system
is an institutionalized
example of how over-
reaction costs people a
bigger problem later.
As traders, we are subject
to the same kinds of
strong emotional pull
when a market moves to
an extreme price range—
we feel that “something
must be done”
In this case—we convince
ourselves that we need to
place a trade.
Be wary of following the
“something must be done”
thinking if you are aware
of it.
One of the most clever
things you can do to
protect your gains and
minimize your losses is to
do nothing when you think
“something must be done”
Often times simply
standing pat and doing
nothing will allow the
market to find a more
reasonable price level.
Resist the urge to move
stops, liquidate, or
overtrade because you
feel “something must be
done”.

October 2008 Performance: (closed trades only)

News & Upcoming Events:
In Date L/S Pair Price Exit Date Price P/L Net
Webinar “Introduction to the Pro-Traders Toolbox” with Genesis 10-01 L EUR/USD 1.4020 10-02 1.3920 -100 -100
th 10-01 S USD/CHF 1.1200 10-02 1.1300 -100 -200
FT on Thursday July 24 was recorded:
Please see the archives for the link.

Educational broadcasts and Introduction to the

Psychology of Trading recorded; files posted to the
archives page.

http://www.forexbrotherhood.com/

Trading off-exchange Cash Foreign Currency transactions (FOREX) involves substantial risk of loss and may not be
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solicitation to buy or sell FOREX by Jason Alan Jankovsky, Core Financial Group, INC., and/or its affiliates; and is not to
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