Hey folks,
We continue to maintain a short bias across most markets (stocks, EU, GU, commodities, Gold, Silver, etc.) as we have for weeks now and will maintain that bias until evidence of a meaningful low is in place. On Monday, pretty much everything slid down in line with our outlook and the bottom is not yet in sight. Even a reasonably better than expected German IFO report had a very rare failure as the EUR/USD sold off instead of rallying. This selloff should at least take us to 880 on the S&P, but the depth of Monday's selloff makes it more likely we'll head down to 850 and potentially lower, but we'll see how that pans out over the next couple of days. In currencies, the USD is bottled up and ready to burst here. It's already made major moves vs. commodity currencies and the European majors, while lagging behind, may very well play catch up here as this week progresses. On EU, look for a break of 1.3750 to target 1.3500 for the next support while a break of 1.6200 on GU will see 1.6000 and likely 1.5800. Odds are we're not only headed down to test these levels, but to break them this week or next at the latest. That said, Tuesdays can often work to consolidate or temporarily reverse the trend (Turn Around Tuesday syndrome), so look out for such action just in case. For Tuesday's news:
1000 US Existing Home Sales m/m (4.82M expected) - Exisiting home sales has been the most active and best trading housing report in recent months. I expect it to pull both stocks and currencies, but be careful at watch related headlines in case some other details of the report (like median sale price and % from foreclosures) cause a bit of second guessing.
If it comes out at 5.00M or higher, EUR/USD should rally 40-50 pips in the first 20 minutes.
If it comes out at 4.62M or lower, EUR/USD should sell off 40-50 pips in the first 20 minutes.
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
We continue to maintain a short bias across most markets (stocks, EU, GU, commodities, Gold, Silver, etc.) as we have for weeks now and will maintain that bias until evidence of a meaningful low is in place. On Monday, pretty much everything slid down in line with our outlook and the bottom is not yet in sight. Even a reasonably better than expected German IFO report had a very rare failure as the EUR/USD sold off instead of rallying. This selloff should at least take us to 880 on the S&P, but the depth of Monday's selloff makes it more likely we'll head down to 850 and potentially lower, but we'll see how that pans out over the next couple of days. In currencies, the USD is bottled up and ready to burst here. It's already made major moves vs. commodity currencies and the European majors, while lagging behind, may very well play catch up here as this week progresses. On EU, look for a break of 1.3750 to target 1.3500 for the next support while a break of 1.6200 on GU will see 1.6000 and likely 1.5800. Odds are we're not only headed down to test these levels, but to break them this week or next at the latest. That said, Tuesdays can often work to consolidate or temporarily reverse the trend (Turn Around Tuesday syndrome), so look out for such action just in case. For Tuesday's news:
1000 US Existing Home Sales m/m (4.82M expected) - Exisiting home sales has been the most active and best trading housing report in recent months. I expect it to pull both stocks and currencies, but be careful at watch related headlines in case some other details of the report (like median sale price and % from foreclosures) cause a bit of second guessing.
If it comes out at 5.00M or higher, EUR/USD should rally 40-50 pips in the first 20 minutes.
If it comes out at 4.62M or lower, EUR/USD should sell off 40-50 pips in the first 20 minutes.
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
