Sir Pipsalot's Daily Market Update 12-14-2009

Sir Pipsalot

Former FPA Special Consultant
Hey folks,

We got some further technical breakdowns on the EUR/USD in particular that strengthens our long term bearish outlook but has made it difficult for me personally to find a prudent entry. At this point I'm considering moving a sell down to 1.4750 with a 300-400 pip SL, but I don't want to dilute the profits with such a wide SL if avoidable, so I'd like to see if the Dubai World bailout announced overnight has enough risk appetite driving momentum to force the EUR/USD somewhere closer to 1.4860 where it would be a better short.

Stocks seem to be benefiting the most from the news out of Dubai, so it's quite possible we get a break to new highs around 1120 on the S&P before the next turn lower. For now, I'd say hold medium to long term shorts if you can give them enough room, but I'm holding off on any short term trades until we get more overbought or break some support.

In news Friday, we saw US Core Retail Sales come in much better than expected, and as I talked about, the move on USD/JPY held up climbing gradually for 90 pips! EUR/USD and GBP/USD actually whipsawed into a deep selloff even on the good news... so both predictions worked well. There's no news worth trading on Monday, so our next news item preview will be in tomorrow's signal for UK CPI and AU GDP.

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