It looks like the markets are going to start Twenty Ten like they ended 2009 and it looks like the weather patterns in the Wasatch are going to do the same. High pressure system is sitting, sitting, sitting... so while you are sitting, head down to a new pizzeria (you can never have enough) in Salt Lake City called Vinto.
Oil is up, gold is up and you know what that means for the dollar - DOWN! The dollar has weakened quite substantially against most cross pairs over the last weak and is getting hammered during the Asian and European session.
We wil see if that trend continues in the first US session of the New Year, keeping in mind we have economic data on the docket in the form of Manufacturing ISM at 10am Eastern. It could be a non-event as futures are off to a great start in the equity markets and we have Non-Farm Payrolls on Friday. We could look deeper into the ISM number and focus on the employment component, but come on, it is Manufacturing and we seem to have a pretty good analysis of this sector right now. Nonetheless, due to Friday's report, the employment component could provide quidance.
On longer term charts, the dollar is bumping up against resistance (or support) in certain pairs and broke through in others:
AUD/USD:
USD/CAD:
It is a New Year, so remember your rules and with discipline, it could be a nice first week. BUT, if trades don't develop, don't force it.
If I see volatility and market action/opportunities, I will post a "live in the US equity session" trade update. Then again, you may find the Head Local doing laps on the Red Cloud liftat Deer Valley in an un-named area.
For all of you equity traders, I will give my socially responsible stock of the day analysis. Today's company is a sustainable coffee grower - Green Mountain Coffee Roasters.
Happy Trading and Be Environmentally Cool with Locals Have More Fun Apparel
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