Sir Pipsalot's Daily Market Update 12-31-2009

Sir Pipsalot

Former FPA Special Consultant
Messages
511
Hey folks,

Just a brief update given the impending holiday. Pretty much everything I mentioned in yesterday's signal (http://www.forexpeacearmy.com/forex-forum/sir-pipsalots-daily-trading-signals/8138-sir-pipsalots-daily-market-update-12-30-2009-a.html) seems to be panning out so far. I do expect the EUR/USD to push higher to at least 1.4568. For now, a long from a sensible spot with a target in that region (see chart in yesterday's signal) seems like the best swing trade. Once we get up there though, it's time to start looking long term short as the EUR/USD is well poised for a multi-month decline once this retracement period is over.

On stocks, the short term looks muddy, but it's only a matter of time before the long term downside kicks in just as sharply as it did on the EUR/USD in December. There's no more particularly news for the rest of the week, so I'll see you folks with the next signal after the weekend.

My best educated guess is that short on stocks and long on USD will be two very profitable positions to hold for the year, or at least a large part of it. Oftentimes the best way to profit on very long term moves is not necessarily with a trade, but more like where you keep your money. For example, my British friend has a similar opinion and has ceased adding to his retirement stock portfolio and switched his currency trading account from GBP based to USD based. If you have a long term opinion on the strength or weakness of a major market or currency, usually there are small things like that you can do to benefit from them if you're right, but not get killed if you're wrong. Seek those out.

Have a happy New Year everyone!

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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