Sir Pipsalot
Former FPA Special Consultant
- Messages
- 511
Happy Halloween folks,
Well, a day early, but a fun holiday in the states nonetheless. The markets have sure treated us with some nice setups as now both the EUR/USD and GBP/USD are excellent shorts at current levels for just about any timeframe. As I mentioned in a later response within yesterday's signal post, the GBP/USD has set up beautifully for a 200 pip SL position trade sell around 1.6550 to 1.6600, but it also can work as more of a swing trade sell with a stop above yesterday's highs (1.6604). The Euro retracement seems to be topping out, but I think it could still possibly gain futher up around 1.4900 before turning lower. A break through 1.4920 fibonacci though would have me concerned about the overall trend.
Stocks bounced beautifully right into the bottom edge of the sell zone I identified yesterday that would make for a good short between 1060 and 1080. I've entered more of a long term short now on stocks around 1060 on futures and 1063 S&P cash with a mental stop just above Monday's 1090 or so highs. Personally I've chosen to get short via put options. I'm not in everything I want to load up short, so I'm waiting for either further retracement (better price) or further downside confirmation (better odds) in order to add more to the position. Given how sharp and fast the retracement was in most markets though, I'm thinking it may not hold up much longer and the downside will resume faster than I had expected yesterday.
In news Thursday, we saw the EUR/JPY rocket up hard on GDP numbers that were only slightly above expectations, so there was a real overreaction there. Nevertheless, at least we had the right pair in mind for potential upside on a good number. There's no real clear news opportunities for Friday. There is a lot of 0830 US Data, but it's tough to pick a specific one out of the bunch of smaller indicators to key in on, so for news trading purposes, it's probably best to skip. As usual with the U.S. though, if it's all really good news, it should help EUR/JPY, and if it comes in low, EUR/JPY should exhibit weakness around that time.
Well, a day early, but a fun holiday in the states nonetheless. The markets have sure treated us with some nice setups as now both the EUR/USD and GBP/USD are excellent shorts at current levels for just about any timeframe. As I mentioned in a later response within yesterday's signal post, the GBP/USD has set up beautifully for a 200 pip SL position trade sell around 1.6550 to 1.6600, but it also can work as more of a swing trade sell with a stop above yesterday's highs (1.6604). The Euro retracement seems to be topping out, but I think it could still possibly gain futher up around 1.4900 before turning lower. A break through 1.4920 fibonacci though would have me concerned about the overall trend.
Stocks bounced beautifully right into the bottom edge of the sell zone I identified yesterday that would make for a good short between 1060 and 1080. I've entered more of a long term short now on stocks around 1060 on futures and 1063 S&P cash with a mental stop just above Monday's 1090 or so highs. Personally I've chosen to get short via put options. I'm not in everything I want to load up short, so I'm waiting for either further retracement (better price) or further downside confirmation (better odds) in order to add more to the position. Given how sharp and fast the retracement was in most markets though, I'm thinking it may not hold up much longer and the downside will resume faster than I had expected yesterday.
In news Thursday, we saw the EUR/JPY rocket up hard on GDP numbers that were only slightly above expectations, so there was a real overreaction there. Nevertheless, at least we had the right pair in mind for potential upside on a good number. There's no real clear news opportunities for Friday. There is a lot of 0830 US Data, but it's tough to pick a specific one out of the bunch of smaller indicators to key in on, so for news trading purposes, it's probably best to skip. As usual with the U.S. though, if it's all really good news, it should help EUR/JPY, and if it comes in low, EUR/JPY should exhibit weakness around that time.
Last edited: