Hey Folks,
No video signal tonight, just a text signal since there's no news today (Thursday) reliably worth trading. Tuesday saw a wicked bear market rally that somewhat predictably sold off eventually on Wednesday. With our short or risk aversion bias, the rally was a great opportunity to get short on stocks at a nice price and consider looking for risk aversion sells in XXX/USD and XXX/JPY pairs; however, as we have seen in the last 1-2 weeks, risk aversion does not translate into clear USD and JPY strength the same way it used to. We're seeing some clear shifts into more of a USD driven market, and I think with some of the soveriegn downgrade fears subsiding, and some nice lower low/lower high action on the EUR/USD, I think we can continue to look to sell EUR/USD and GBP/USD on rallies and milk it short, but I'd refrain from chasing it after a good selloff like we've seen.
Stocks should encounter further weakness, but have been channel trading, so the key level to watch as I've been saying is 875 on the front month futures. Once that level goes we should see further confirmation and accelleration.
Gold continues to channel trade as well, so short term buys below 950 and longer term sells above 960 make sense there. The news items coming out Thursday are small and may provide some direction on big surprises, but the odds are not terribly good we'll see tradable price action. I'd prefer to skip them and hold out for better opportunities.
TRADE LIVE WITH SIR PIPS FOR $39.00 FOR 2 WEEKS
Sir Pipsalot has a live trading room, in which he trades these news reports. There, he shares his trades in real time, including exact entries and exits, and detailed explanation for every entry and exit. The service costs $299 per month, but we have a 14-days $39.00 trial. Go to Forex Diamonds and take advantage of this offer. This offer is for NEW customers only.
To our success,
Sir Pipsalot
No video signal tonight, just a text signal since there's no news today (Thursday) reliably worth trading. Tuesday saw a wicked bear market rally that somewhat predictably sold off eventually on Wednesday. With our short or risk aversion bias, the rally was a great opportunity to get short on stocks at a nice price and consider looking for risk aversion sells in XXX/USD and XXX/JPY pairs; however, as we have seen in the last 1-2 weeks, risk aversion does not translate into clear USD and JPY strength the same way it used to. We're seeing some clear shifts into more of a USD driven market, and I think with some of the soveriegn downgrade fears subsiding, and some nice lower low/lower high action on the EUR/USD, I think we can continue to look to sell EUR/USD and GBP/USD on rallies and milk it short, but I'd refrain from chasing it after a good selloff like we've seen.
Stocks should encounter further weakness, but have been channel trading, so the key level to watch as I've been saying is 875 on the front month futures. Once that level goes we should see further confirmation and accelleration.
Gold continues to channel trade as well, so short term buys below 950 and longer term sells above 960 make sense there. The news items coming out Thursday are small and may provide some direction on big surprises, but the odds are not terribly good we'll see tradable price action. I'd prefer to skip them and hold out for better opportunities.
TRADE LIVE WITH SIR PIPS FOR $39.00 FOR 2 WEEKS
Sir Pipsalot has a live trading room, in which he trades these news reports. There, he shares his trades in real time, including exact entries and exits, and detailed explanation for every entry and exit. The service costs $299 per month, but we have a 14-days $39.00 trial. Go to Forex Diamonds and take advantage of this offer. This offer is for NEW customers only.
To our success,
Sir Pipsalot
