It has been a very, very difficult March market thus far that has caused some of my colleagues, more veteran than I, to groan in agony over the poor price dynamics and lack of commitment. We are down about 150 pips for the month, which I actually consider to be a victory. We have pulled down over 2500 pips in the last 4 months, and to give back only 150 so far shows that we are being extremely prudent in our discipline and risk management. We are gong to continue to tread very lightly in this difficult market. And WHEN it opens back up and a trend emerges, we will have plenty of trading capital and stamina left in the gas tank to stomp on the gas pedal. Right now, our best bet is to remain very nimble and light in any positions we take.

That being said, I am watching a key 1.3700 resistance level in EURUSD that should hold to keep the dollar bull story alive. Also, I am considering a light long position in AUDJPY based on the 180 min chart from yesterday targeting the 84.00 level. Doing nothing yet, just watching . Stay patient, it will come. TG.

Within corrective wave .C (purple) I have us in the 5th and final wave of the impulse wave targeting resistance between 83.25 and 85.00. There exists a very thick Fib resistance zone between 84.00 and 84.30, with a final, single fib projection level at 85.00.

I will be looking to setup shorts into this zone. Stay tuned here, as well as on Twitter for further information.

So taking a look at the USDX daily to figure out just how long bulls and bears will have to chop each other up before we can move in and trade the resolution, we notice blue wave 2 back at the end of '09 and early '10 lasted 15 trading days. The dollar broke higher in wave 3 moving to a completion date of Feb 5, 2010, which began wave 4. Equality in terms of time at 15 trading days was reached on Feb 26,2010 with no breakout from wave 4. Today, we are in the 22nd trading day with key Fib time dates of wave 2 time duration multiplied by 1.618, which puts us at 24 trading days on March 11,2010, this Thursday. After that is 2 X's the total time elapsed in wave 2 on March 17, 2010, which is 30 days of time spent in triangle wave 4. A completed purple .E wave occurring on one of these Fib dates would be a very solid long setup for a 5th wave explosion to new highs in the USDX.

If you find yourself getting bored, frustrated, or chopped up in this trading range, keep in mind that is exactly what ranges and triangles are designed to do. Don't fall victim to it. Be disciplined and seasoned enough to sit on your hands and watch the chop around you without being compelled to jump in the market for some action. We trade for profits, not for entertainment.

Back to the USDX chart, take a look at the daily VIX chart included below. You will notice that the 2 major drops in S&P 500 volatility confirmed the corrective patterns I am proposing in the USDX chart. Wave 2 in the USDX was accompanied by a drop in the VIX starting 12/17/09 and ending 1/11/10, and the on-going wave 4 triangle has been accompanied by a huge drop in VIX. Where could the VIX bottom out, you ask? Well, we are fast-approaching the VIX low from the prior corrective wave 2 at 16.86.

A push below VIX 17.00, with the requisite E-wave completion of the triangle on one of the Fib dates proposed above would be just an unbelievably high probability long USD entry.

On a more micro time frame, I am closing watching the AUDUSD level of 0.9160 highlighted in yesterday's SOTD. I fully expect the market to hold resistance there, but am not yet willing to commit to a long dollar position based on the USDX analysis above. Watching in here. CNBC tonight at 5:00 PM ST. TG.

Watching EURUSD continue to maneuver within the 4th wave triangle. It's not the most reactive pair to the strong economic data, but is respecting technical levels well. Keeping an eye out here. Enjoy the weekend. TG.

**ANNOUNCEMENTS**

TWITTER WOULD YOU LIKE TO BE NOTIFIED WHEN SOTD IS UPDATED? As of February 2009, I have begun posting on Twitter. Many of you have requested a way to be notified when I update the Strategy of the Day and I think Twitter is a great way to do that. For instance, if we need to make a quick move to take profits ahead of an intended target or cut a losing position because the market is not acting well and you are away from the FOREX.com platform, this is great way to be alerted via text message or email. To receive my updates, simply follow me on Twitter. If you do not yet have a Twitter account, take a few moments to create one. Once you are following me, you can go into your Twitter settings and choose to receive my ?tweets? via SMS messaging. This will allow you to receive update notices and other commentary from me right on your mobile phone. To set it up, go to your settings and select the devices tab. Enter your mobile number and check the box granting permission. Once you hit ?save? you are ready to get a daily dose of Todd Gordon right on your mobile device.

COMING MEDIA APPERANCES

CNBC Fast Money Interview 3.8.10 5:00 PM EST CNBC Headquarters

CNBC Fast Money Interview 3.9.10 5:00 PM EST CNBC Headquarters

CNBC Fast Money Interview 3.11.10 5:00 PM EST CNBC Headquarters

CNBC Fast Money Half Time Interview 3.17.10 12:45 PM EST NYSE

CNBC Fast Money Half Time Interview 3.19.10 12:45 PM EST NYSE

CNBC Fast Money Half Time Interview 3.23.10 12:45 PM EST NYSE

CNBC Fast Money Half Time Interview 3.30.10 12:45 PM EST NYSE

DVD RELEASE We recorded a presentation I gave in Chicago back in January 2009 about the tools I use here in Strategy of the Day- FOREX Trading Using Fibonacci and Elliott Wave.

STRATEGY OF THE DAY - What's New in 2010 Strategy of the Day, or S.O.T.D., features in-depth analysis of the FOREX markets based on Elliott Wave and Fibonacci principles, Intermarket analysis, as well as more elementary technical analysis methodologies. SOTD is not just a traditional research piece, however. SOTD is actually a written game plan and trade journal of how a professional fund trader approaches the FOREX markets. Todd executes the trade ideas shared in SOTD in his G.C.A.M.(GAIN Capital Asset Management) account. All aspects of the trade are shared including the analysis, position sizing, entry, stop loss, and take profit levels. SOTD readers can follow Todd's trades as he puts his ideas to work in the market in real time, and with real dollars. SOTD is updated at least once daily on the FOREX.com platform.

POSITION SIZING To begin the new year, I am going to introduce some new features of SOTD. In the past I have shared with you all aspects of a trade idea including analysis, entry and exit levels. Going forward, I am going to include my position sizing for each trade idea as well. Essentially, the smallest position I trade will be referred to as a ?unit?. The maximum size I will put on in a single position is 50 units of a notional USD position. For an average sized position, I will have anywhere from 5 to 10 units at work. The more units in a position you can work with, the more flexibility you will have in entry and exit tactics. If you are only able to trade 1 or 2 units, I would adjust your account size to ensure you have the proper flexibility.

WAVE ANNOTATIONS Much like the original wave annotations introduced by Ralph Nelson Elliott in the early 20th century, I am going to introduce a standardized labeling procedure custom to SOTD. This will allow you the reader to quickly identify the location and degree of my Elliott wave counts on the charts. As you can see on the chart below, I have listed 9 possible degrees of wave counts and the corresponding chart time frame that is likely to use a particular annotation. Now obviously you will not see just one degree of wave annotations on any chart. My purpose within this framework is to align a certain degree wave annotation with the primary price trend on a given chart. For example, if you see a blue underlined roman numeral labeling, the price move I am studying is probably best viewed on either a 30 or 45 min timeframe. Once you see black Arabic numeral labels, the move is probably best seen on either a 60 or 90 min chart.

Questions or comments?