Sir Pipsalot
Former FPA Special Consultant
- Messages
- 511
Hey folks,
The market looked pretty dead heading into Monday, so I decided to take the day off and indeed, there was not a lot of action. In general, there's a good possibility that this entire week stays relatively quiet with the exception of a random day or two. Right now the markets are taking a breather before the next move gets going likely today on Tuesday. From what I can tell, it looks to me like the EUR/USD will continue it's pre-Christmas bounce higher, but it's irresponsible to bet heavily on that outcome unless we get confirmation with a break through 1.4420-25 resistance.
In stocks, I think things look a little less uncertain. We're in a region of key resistance, so if you're in a medium to long term short (as I am) or enter a short here, I'd hold on with an SL around 1130 on the futures or 1134 on the live market. Short term though we've definitely got some bullish pressure, so we may have to wait another day to see things clear up a bit for a shorter term trade.
In news Tuesday:
1000 US Consumer Confidence (53.0 expected) - Since the market has been shifting how it reacts to US news, I would wait to see the initial reaction before picking which currency to trade on this one. In general, the market has shifted to broad-based USD moves on news meaning USD will strengthen on good news and weaken on bad news more and more now. Honestly, I can't tell for sure whether the EUR/USD or USD/JPY will be better to take advantage of that at this point, so I will watch and react.
If it comes out at 57 or higher, USD should strengthen
If it comes out at 49 or lower, USD should weaken
I hope everyone had a wonderful Christmas and enjoys a happy New Year!
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
The market looked pretty dead heading into Monday, so I decided to take the day off and indeed, there was not a lot of action. In general, there's a good possibility that this entire week stays relatively quiet with the exception of a random day or two. Right now the markets are taking a breather before the next move gets going likely today on Tuesday. From what I can tell, it looks to me like the EUR/USD will continue it's pre-Christmas bounce higher, but it's irresponsible to bet heavily on that outcome unless we get confirmation with a break through 1.4420-25 resistance.
In stocks, I think things look a little less uncertain. We're in a region of key resistance, so if you're in a medium to long term short (as I am) or enter a short here, I'd hold on with an SL around 1130 on the futures or 1134 on the live market. Short term though we've definitely got some bullish pressure, so we may have to wait another day to see things clear up a bit for a shorter term trade.
In news Tuesday:
1000 US Consumer Confidence (53.0 expected) - Since the market has been shifting how it reacts to US news, I would wait to see the initial reaction before picking which currency to trade on this one. In general, the market has shifted to broad-based USD moves on news meaning USD will strengthen on good news and weaken on bad news more and more now. Honestly, I can't tell for sure whether the EUR/USD or USD/JPY will be better to take advantage of that at this point, so I will watch and react.
If it comes out at 57 or higher, USD should strengthen
If it comes out at 49 or lower, USD should weaken
I hope everyone had a wonderful Christmas and enjoys a happy New Year!
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
