The Local's Take: Sell the Equity Rally

Good Morning,
Rallies are to be sold - I said that in my first post on IBFX Connect this morning to aler traders that the SPY has made a huge move - from down 2 to the positive on the day- I can't imagine who wants to go home long. Short covering maybe, but anyone who is buying the dip is providing us with a great trading opportunity to the downside. It wasn't super clear technically as we didn't have a double top, overall it was more of a "this move has gone too far trade", but that can work out when you layer in the size of the move and a (hopefully) Friday selloff.


Past performance is not indicative of future results
Moving into forex, the huge move up in equities gave us a weak dollar and provided two BUFFALO BOUNCES:

Past performance is not indicative of future results



Past performance is not indicative of future results
To wrap up, next week will bring our regular slew of decisions, debt debates, and speakers. Regarding US specific data, watch out for fireworks late in the week with:
-unemployment claims
-GDP
-Bernanke
-Jackson Hole Symposium
Happy Trading and Be Environmentally Cool
Coach Brian
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.