Were Bernanke's comments an excuse to carry through to the downside? Remember what I posted on Friday - a shockingly bad number can cause the markets to trend down for days (the opposite is true as well). Also remember, the markets usually react to economic data, especially the big daddy of them all: unemployment. We had a lot of bad data over the past week and finally, with the fed out of the picture (for the time being), we reacted to it (and in the correct direction). No more missing expectations on the jobs report (badly) and the markets rally (big). That is until the fed comes back in...
Before we go to the charts, webinar tomorrow evening and here is the link.
To the charts. Not much excitement over the past few days in forex. In fact, quite dismal trading ranges. Which is fine because the options markets are giving us everything we can handle. One opporunity though is in the EUR/USD. Check out the rally it has had - is it time to DOUBLE FALL LINE TRADE?
It will be interesting to see if it can push towards the double top. If I remember correctly, didn't Trichet say they were keeping their interest rates low? That was at 1.4900 back in April. Hmmmmm....
To the equity/option markets. Selloffs are providing some lick your lips deals out there. Remember though, we aren't married to anything and can take that obligation off at anytime using technical analysis and trade management/discipline.
Some to ponder: VLO, RIMM, CSCO. BUT, the markets are bearish and sellers are in charge and they can fall a lot further!!!
See you tomorrow evening on the Interbank FX Webinar
Happy Trading and Be Environmentally Cool
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