Good Morning,
Lot's to talk about. Fundamentally, we have the biggy at the end of the week in the form of unemployment. Early consensus is 90k - I am OK with that. It may even get towards the 150k mark, but nothing above that. Either way, if it comes in at or above the consensus, it isn't enought to spur confidence as we have already heard from the Fed: slow going on the jobs front (slower than we anticipated), hence an accomodative policy stance for the next 2 years.
In between now and Friday, we have lots of data (consumer confidence, CHIPM, ISM and unemployment claims.
Technically, the SPY is holding onto its double bottom. We are the "neckline" at the 121 area and it if gets above this, we could be looking at the 130 area as a target. I am not sure how long tradres want to be heading into the unemployment number on Friday, so intermediary data could put a halt on the run if we get poor data:
Past performance is not indicative of future results
A stock that has a similar look is Ford (F). If you are using options, you had already bought your call in the 10 area if you were bullish. If you were neutral, you already sold your 10 or 9 put for the income. That is the great thing about certain option strategies, you can make money and the stock doesn't have to go your way.
Past performance is not indicative of future results
Moving to forex, the dollar has gotten beaten up. Is it going to strengthen a bit? Hard to say as the dollar usually weakens when equities strengthen. Today, the dollare strengthened and equities strengthened, which one is wrong (if any)?
Check out the up move in the GBP/USD over the past few days:
Past performance is not indicative of future results
This dollar/equity relationship led to a DOUBLE FALL LINE TRADE in the USD/CAD:
Past performance is not indicative of future results
Park City Trading/Investing Club meets this evening.
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.
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