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Sir Pipsalot's Daily Market Update 1-05-2010

Discussion in 'Commercial Trade Journals' started by Sir Pipsalot, Jan 4, 2010.

  1. Sir Pipsalot

    Sir Pipsalot Former FPA Special Consultant

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    Hey folks,

    The EUR/USD bullish scenario I've been pitching since http://www.forexpeacearmy.com/forex...psalots-daily-market-update-12-30-2009-a.html is playing out well so far. Euro bullishness may take a bit of a breather, but we're still likely to see this extention continue higher to at least 1.4560 as referenced in the link. For now, buying on dips for a medium term trade makes sense. Long term, we'll wait for this potential rally to mature and try to position short for the bigger move down the road.

    Stocks managed a New Year rally today to set slight new highs largely fueled by better than expected ISM Manufacturing figures and the general tendency of stock bullishness for the first few trading days of the new year. Many investors will close unprofitable positions at the end of one year to lock in losses to save on capital gains tax, only to reopen those positions after the new year. This real or at least perceived demand is propping stocks up for the moment. For now, it will take a trade below the 1109.75 low to assure bearish follow-through.

    In news Monday, we saw a nice short term rally on GBP/USD following the better than expected UK Manufacturing PMI seeing 40 pips up in the first 8 minutes, a pullback, and a peak 75 pips up after about 45 minutes thanks to some follow-through USD weakness. US ISM Manufacturing numbers came out higher than expected as well but we only saw choppy, limited gains of 10 pips on USD/JPY that fell off after a few minutes. Almost no currency pair worked particularly well this time on ISM unfortunately. There ia a report on Pending Home Sales for the U.S. due out Tuesday, but given the poor action on ISM today, I'd prefer to skip it.

    That's all for today's update. If you'd like to learn more about trading or trade along with myself and my collegues, come join us at Profit Mongers. Our subscription is very reasonable at $179 per month, and right now you can sign up for a 2 week trial to get started for only $29. This offer is for new customers only.

    To our success!
    Sir Pipsalot
     

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