Price Headley discusses the types of commons gaps traders are likely to see, and how to profit from them.

US economic data is likely to send mixed signals once again on Friday, leaving the equity markets to continue their trek higher while allowing the greenback to drift even lower.

Over the past month, the value of the US dollar has fallen significantly with the once mighty greenback dropping to a record low against the euro and a 31-year low against the Canadian dollar. What does this mean to you?

If prices keep going down at the present rate, the average house in America’s top 20 cities will lose more than 5% of its value this year. The bottom can be years away. It all depends on how much the Fed fights the slowdown (the more the Fed fights a needed recession, the longer the recession will be).

Sales of new and existing homes dropped and the median prices of homes sold also fell, and collectively the figures provide strong evidence that the US economy is in trouble.

Tim Bourquin interviews John Netto, who talks about how he bounces back from some bad months and how he watches currency as a way to gain understanding of other markets.

The human mind can rationalize a lot of things. Unfortunately, it can also rationalize incorrectly.

Traders may face yet another round of negative US economic data on Thursday, but with equity markets keeping their eyes on the prize of another possible rate cut by the Federal Reserve in October, currency traders may be the only ones paying heed to the news.

A further flattening in the volatility curve of the Japanese yet suggests that a breakout move may happen within the coming week of trading.

The Federal Reserve has often resorted to lowering interest rates to get the economy out of a financial crisis, but easier monetary policy is exactly what has been blamed for creating the bubble that we have now.