Hey folks,
Friday was a pretty quiet, rangebound day in most markets, but the price action is very reassuring for medium term downside on GBP/USD, EUR/USD, stocks, and gold. Gold broke the all-important 940 level and should trade lower to next support at 900 (remember ~700ish is our ultimate target though long term). Right now the Diamonds room is working position trade sells on all 3 (GU/EU/Gold).
The patterns over the next few weeks on stocks should prove very important as one of 2 scenarios is likely developing:
a) a primary wave 3 selloff is starting that will take the S&P 500 to 400 or below over the next 6-24 months.
b) another intermediate wave X will zigzag prices to the 800-850 level or a bit lower fairly soon and an intermediate wave Z will take prices to new highs in the late summer or early fall.
The way in which this coming downside develops will make the odds favor one outcome over the other, so I'll let you guys know how this scenario is developing. Right now, I'm short on options better optimized for situation (a) so if (b) develops I'll probably have to take smaller profits on those options and take what I can on the smaller selloff. If you're not in with any puts, you might want to focus more on September contracts and plan to hold them for a few weeks or a month so you can catch the whole (b) scenario move or the first part of the (a) scenario move and then reassess.
As far as news is concerned, there's nothing of note for Monday and the first economic indicators of the week come out Tuesday, so we'll preview those tomorrow.
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
Friday was a pretty quiet, rangebound day in most markets, but the price action is very reassuring for medium term downside on GBP/USD, EUR/USD, stocks, and gold. Gold broke the all-important 940 level and should trade lower to next support at 900 (remember ~700ish is our ultimate target though long term). Right now the Diamonds room is working position trade sells on all 3 (GU/EU/Gold).
The patterns over the next few weeks on stocks should prove very important as one of 2 scenarios is likely developing:
a) a primary wave 3 selloff is starting that will take the S&P 500 to 400 or below over the next 6-24 months.
b) another intermediate wave X will zigzag prices to the 800-850 level or a bit lower fairly soon and an intermediate wave Z will take prices to new highs in the late summer or early fall.
The way in which this coming downside develops will make the odds favor one outcome over the other, so I'll let you guys know how this scenario is developing. Right now, I'm short on options better optimized for situation (a) so if (b) develops I'll probably have to take smaller profits on those options and take what I can on the smaller selloff. If you're not in with any puts, you might want to focus more on September contracts and plan to hold them for a few weeks or a month so you can catch the whole (b) scenario move or the first part of the (a) scenario move and then reassess.
As far as news is concerned, there's nothing of note for Monday and the first economic indicators of the week come out Tuesday, so we'll preview those tomorrow.
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