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Sir Pipsalot's Daily Market Update 1-07-2010

Discussion in 'Commercial Trade Journals' started by Sir Pipsalot, Jan 7, 2010.

  1. Sir Pipsalot

    Sir Pipsalot Former FPA Special Consultant

    Dec 11, 2007
    Likes Received:
    Hey folks,

    Well, the sharp reaction lower we discussed yesterday on the EUR/USD was indeed shrugged off and we look poised to rise further. A long from here on the Euro (1.4375 as I type) makes sense with a 30 pip SL, or some other intelligent trade after a dip on the Euro all seem like good ideas. Also, given the shift in stance out of Japan (old finance minister was a JPY bull, new finance minister is a JPY bear), I'd look for further opportunities to capitalize on JPY weakness such as a long on EUR/JPY, and perhaps a long on USD/JPY when the Euro tops out over the next week or so.

    Stocks are just stuck in limbo... I feel they're positioned for a long term short, but there's also some firm demand supporting things. The shorter time periods are quite nebulous, so I'm holding off any new trades there until things clear up.

    In news Wednesday, we saw all the news come out very close to expectations except AU Retail Sales which came in quite high, gave us the 40-50 pip fast rally we expected, then consolidated and reversed lower as somewhat anticipated in yesterday's signal. In news Thursday:

    0700 BoE Interest Rate Decision (no changes expected) - They're expected to keep interest rates and their APF unchanged at 200B. Chances are they'll provide little surprises until February when they release their Quarterly Inflation Report. Typically the BoE has bigger surprises in those months. In any case:
    If they exhibit a hawkish tone or aim to cut their APF allocations, GBP/USD should be quite strong.
    If they exhibit a dovish tone or add to their APF allocations, GBP/USD should be quite weak.

    1000 CAD Ivey PMI (52.0 expected) - This relatively quiet indicator has been making a comeback as of late posting wonderfully slow but predictable steady moves. Typically a surprise here should push the USD/CAD for 5-15 minutes for a 30-50 pip move giving plenty of time to get in early.
    If it comes out at 56 or higher, USD/CAD should fall 30-50 pips slowly.
    If it comes out at 48 or lower, USD/CAD should rally 30-50 pips slowly.

    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
    #1 Sir Pipsalot, Jan 7, 2010
    Last edited: Jan 7, 2010

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