First of all I want to say thanks to all who read my thread and provide an especially big thank you to the many men and women who kissed me back intonigeriaforextradinga couple weeks back and who have been so generous with their compliments since.

What I attempt to do this is to divide the things of some of the major news events in order to get a deeper comprehension of exactly why. The idea then is to select the what/why and apply it to some trading because I firmly believe that a deeper comprehension of the what/why will make it possible for all of us (me included) to spot a few of the major trends and make a few major pips.

Allow me to give you two examples of exactly what I believe and please, I'm not doing this to toot my own horn or to make myself look better or more knowledgable than any of the numerous fine analysists here on FF.

I welcome any queries or differences of view. Don't be shy about having either and writing a reply. Active discussion can only help everyone.

Allow me to give you two examples of exactly what I referred to as the what/why. These are abbreviated because they've been extensively discussed in previous posts.

What: Fed retains its' inflation bias. Confirmed by Bernanke's testimony from two weeks ago.

Why: It is not just the core PCE number; lowering interest rates while the market is at a stagflationary phase may lead to a very dangerous runaway inflationary period that would likely have a far longer lasting and deep impact on the market then any recession that could lead to an increase of rates during a stagflationary phase.

Apply the What/Why: The US market is at a weak phase while other world economies are now waxing. That's the reason why the $ has shrunk against every major currency despite the fact that it's apparent to this market that the Fed won't be cutting rates any time soon (supported by Fed Funds Futures trading). Anticipate a $1.37-38 EUR and $2.0-2.1 GBP in another few months.

I know-the $'s stronger against the Yen-that is a function of the carry trade that's clarified in the next illuion:

What's BoJ is about a course to gradually normalize their rate

Why: To manage an expanding market in order to protect against exactly the identical bubble that placed them at the 15 year recession/deflation situation they have been in (and aren't yet completely out of).

Apply the What/Why: The carry trade is in order because the bank can simply raise rates very slowly-if in any way. Long up-trends at the JPY crosses long lasting days and weeks (and maybe months) have been (are) to be expected (a lot of it has occured and more is likely to) since the GBP/JPY approaches 240 and USD/JPY approaches 120.

Please be aware that these trends aren't 20 pip swing transactions performed 5 minute charts. They are long term trends that may provide 100's of pips within the course of days and weeks. I've come to the conclusion that the reason 90% of retail traders fail is that they are trading the very short-term bleeps and blips that occur inside the major trends. I am also convinced that the best way to trade is to identify the major trends at the start and later to buy on the dips within these major trends. IMO, when the GBP/JPY is at a 1500 pip upturn, attempting to scalp 40 pips off a temporary downturn is a losing proposition.

So I hope you'll keep returning to my ribbon for a long time to come. I've every intention of being here for a long time-God willing.

NFX