Tuesday, November 1, 2011

European Woes


Good Morning,
The "bail / fail" trade is back on. Europe fails, we break. Europe bails we rally. Overall, when there isn't bad news, no news at all or an inkling of good news, we rally hard. We still are very much in reach of highs, so I am going to have to say this is a buying opportunity.
The SPX could trade a little lower - towards 1200, but overall, I think it is a nice buying opportunity in certain sectors.
One of those sectors is commodities/energy. Here is a chart of USO, where old resistance may become new support. If you are going to get into any trades, you have to have trade management, meaning, you hvae to know where you will get out for a loss. If the line is violated, you may be getting out of your long investment due to a technical pattern being violated:
Past performance is not indicative of future results

Moving to forex, we had a huge rally in the dollar - look at the EUR/USD on the daily chart. You know I love those DOUBLE FALL LINE TRADES, especially when they are protecting the equity account:
Past performance is not indicative of future results

Intraday, we had a BUFFALO BOUNCE in the USD/CAD:
Past performance is not indicative of future results

And finally, we had a DOUBLE FALL LINE TRADE in the EUR/USD:
Past performance is not indicative of future results

Fed tomorrow, claims on Thursday and Unemployment on Friday. Could it be that we get a huge upside surprise in the job market on Friday and that gets us back to 1260+ in SPX?
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.

No comments:

Post a Comment