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Sir Pipsalot's Daily Market Update 12-23-2009

Discussion in 'Commercial Trade Journals' started by Sir Pipsalot, Dec 23, 2009.

  1. Sir Pipsalot

    Sir Pipsalot Former FPA Special Consultant

    Dec 11, 2007
    Likes Received:
    Hey folks,

    Still no changes to the situation on the EUR/USD. Downside momentum has held up, but the volatility has died down a bit due to the holidays and the thrust of the move has waned a bit as well. See forecasts earlier in the week for some trade ideas assuming things change a bit there.

    Stocks have pushed higher into resistance around 1120 on the S&P 500 index. This is the area I wanted to enter short for a medium to long term trade, so I think a short here right now at 1117.50 on the S&P futures (ESH0 contract, corresponds to about 1121.50 on the S&P500 index) makes sense with about a 10 point stop loss. I'd look for 10-30 points profit on it for a medium term trade.

    In news Tuesday, we saw UK GDP come in low, but not low enough to hit our sell triggers. US GDP did come in low enough to hit our sell triggers, and we got about 25 pips down on USD/JPY but that was about it. US Existing Home Sales came out better than expected, and the USD/JPY did maintain an upwards bias for the rest of the US session, but was unable to push through resistance 30 pips or so above prerelease. In news Wednesday:

    0430 BoE minutes - As usual, the market will dissect the minutes for hints at future BoE tendencies and actions. Only trade this one if you have a pretty firm standing of the fundamentals. At their meeting earlier this month, they decided to keep both QE and interest rates unchanged and had a very vanilla statement. This makes it hard to know what to look out for since we're just looking for surprises.

    0830-1000 Various US pieces of data - We're getting a ton of small US news items this morning (7+ releases), but given the holiday week, I doubt any of them are going to drive markets very well, and none of them deserve a special singling out. If any of them come out incredibly strong or weak, it should have an impact as always, but much less pronounced than usual I would assume.

    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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