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Sir Pipsalot's Monday Market Update 07-19-2010

Discussion in 'Commercial Trade Journals' started by Sir Pipsalot, Jul 19, 2010.

  1. Sir Pipsalot

    Sir Pipsalot Former FPA Special Consultant

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    Hey folks,

    USD/JPY did indeed break the 87.00 level and is now holding below it at 86.70. I think a short on the USD/JPY now with a 100-150 pips SL is a pretty solid trade from a medium term perspective. Risk appetite seems to have taken a noticeable turn south and we'll likely see more follow through to the downside on yen cross pairs such as NZD/JPY, USD/JPY, EUR/JPY, GBP/JPY, etc.

    Some of my trading collegues seem to think EUR/USD may have topped out at 1.3000, and I agree the potential is pretty solid to the downside. EUR/USD is just very extended to the upside, so even a mere pullback should have 100's of pips of downside potential. I think a short here at 1.2904 is a pretty good idea with a 60 pip SL looking for 80-150 pips.

    Stocks sold off beautifully yesterday after my short at 1090 hitting my first TP target of 1070 in the same day. Now futures are still holding lower at 1064.50 as I type and while we may see a small bounce Monday, the short looks good to head towards further downside targets of 1040, 1017, 960 and 890.

    In news Friday, we saw US Core CPI come in a bit high, but slight conflicts with the headline number limited the rally to 30 pips over 7 minutes. Also, at 0955, University of Michigan Consumer Confidence came in well below expectations and helped kickstart a broad based selloff that saw 38 pips down in 13 minutes on USD/JPY, and rocketed stocks lower as well.

    News starts off a bit slow this week with CAD Interest Rates on Tuesday being the first noteworth news item, and we'll cover that in tomorrow's signal.

    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. If you have any questions, you can also email me at sirpipsalot@profitmongers.com

    To our success!
    Sir Pipsalot
     

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