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Sir Pipsalot's Wednesday Market Update 06-02-2010

Discussion in 'Commercial Trade Journals' started by Sir Pipsalot, Jun 2, 2010.

  1. Sir Pipsalot

    Sir Pipsalot Former FPA Special Consultant

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    Hey guys,

    EUR/USD managed to work down below 1.2200 today which sharply switched the near term odds towards a continuation selloff. EUR/USD managed to pip back up, but is now back down to that key level and is likely to sell off below 1.2000. This should be a fifth wave likely to bottom out between 1.1810 and 1.1995, so consider shorts on rallies with TP's in that range. Even a short right now at 1.2212 with a 150 pip SL and 200 pip TP makes ok sense, but a rally to 1.2265 might present a better value for a short and allow a 100 pip SL.

    Stocks have edged lower in recent days, but still have a decent chance for another pop up above 1100 to hit my sell order at 1115 (discussed in Friday, Monday, and Tuesday signals). Conversely, a break of 1035 will confirm a major long-term down trend is back, so if/when it happens, I will discuss strategies for long term short plays. Until then, I'm holding out to get in short near the top of a bounce and take more of a medium term approach.

    In news Tuesday, CAD Interest Rates was a no trade with a hike as expected, but their language was a bit dovish and sent the USD/CAD first upwards by nearly 100 pips, then sharply downwards over the course of 2 hours or so. ISM Manufacturing wasn't quite good enough to hit the trigger I wanted, but still showed some bullish price action reinforcing that my plan would have worked pretty well. Aussie GDP came out too close to expectations too, so no trade there. There's no tradable news due out Wednesday, but there's plenty on tap for Thursday and Friday, so look out for tomorrow night's signal for more on that.

    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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