And the beat goes on! We have more "mediocre" economic news but higher equity prices. Surprised? You shouldn't be. This is to be expected in the "the fed is in charge" economy. Remember, they promised extended low rates at their last meeting, so even with higher initial claims and lower Philly Fed, fundamentals are just good enough and the Fed is still in the picture enough to get us to new highs in the Dow Jones.
If you missed my inter-relationship market webinar and want to catch up on a little trading psychology and fibonacci retracment introduction, please click here for the link. Wow! Now that I see that, I did cram a lot of information into my last webinar!
Whether it is a live class, a webinar or a market commentary post, I always start with the fundamentals. So here they are (notice the revisions to last week's unemployment claims number). I won't even go on the ramble about what these "misses" used to do to economic marktets, but with volatiliy at extreme lows, no matter how "off" a number comes in at, it isn't getting the markets excited. So as I said, the beat goes on. Let's look at volatilty and then the fundamentals.
On to the charts and let's start with forex and the absolute pounding of the dollar. The GBP has truly broken out against the USD, so here is a daily chart showing the breakout and then a 15 minute chart showing a BUFFALO BOUNCE and a DOUBLE FALL LINE TRADE that I was getting into and out of while talking to a fellow trader about trendlines in the EUR. We realize, hands off unless you have very specific entries and exits as the dollar doesn't want to do anything but go lower.
So there you have it, Breakout! The 6 pairs I keep an eye on are killing the dollar. Inflation anyone? Let's look at silver, hopefully you have already bought your Mother's Day presents!
Our socially responsible stock of the day gives a good look at good time to get defensive? Using the Fib's in conjuction with a potential double top gives you a low risk area to sell and/or buy protection.
Hopefully you are stocked up on your commodity plays as they have had a nice run this week.
Happy Trading and by all means, don't look at the economic calendar, just buy, buy, buy!
Coach Brian
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