You have heard me say it before: if you can't go down/retrace a HUGE move to the upside, there is only one way to go and that is UP.
Until we retrace a more significant percenatage, I am staying in the bullish camp. Again, on a Friday, the equity markets prove that the risk is to the upside. From down 170 at the low to down 60 on the close, the bulls bought all the way to the end signaling "fair value" at these levels.
In "normal" markets, when you have good news all week (ISM unemployment, claims data...) and then you get a headline number to miss (it didn't miss by that much), the markets go the other way - hard. We saw that this morning early, but by the end of the day, we were barely off at all.
We have 48 hours for Europe to fix things and if so, we should be off to the races on Monday. Looking further ahead, we have Bernanke on Wednesdsay, but other than that, a very, very light economic calendar as most earnings are behind us. Past results have shown that when there isn't any data, the markets roar to the upside (or at least they don't go down).
Technically, interest rates are still low, SPX is still in striking distance of its recent 1270-1280ish high and there are more buyers than sellers.
Technically today, we had a beautiful BUFFALO BOUNCE in the GBP/USD. By the way has anyone looked at how strong the GBP is against the dollar when compared to the other currency pairs?
Past performance is not indicative of future results
Technically, the SPX has a possible head and shoulders, but again, "technicals schmecticals" in this news heavy environment.
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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