Fundamentally, we have very little news in the US this week. We await Europe on Thursday and Friday.
Technically, big moves in one direction followed by small retracements are followed by big moves in the original direction. Who is willing at these high levels? Buyers or sellers. If we think Europe is going to fail, we sell off. No one and I repeat no one is selling up here. We move up 5 to 8 percent and no one thinks we are overvalued. So, as it has been in the past, the risk is to the upside. 1250 in SPX is "support/resistance" but coordinated international events don't care about technicals, so use them with a grain of salt. More importantly, no matter what tool you use, trade appropriately for this type of "rumorville" trading.
Overall, this level doesn't excite me to take new longs or add new protection ahead of what seems to be a bullish event. If it turns out to be bearish, protection will help to buffer the downmove, but how much protection depends on your individual pessimistic/optimisic feelings and your level of conservatism or aggressiveness.
Intraday trading was fun today. Again, no trading opportunities last week due to international news every European session while I slept. Today we had moves and countermoves and saw two DOUBLE FALL LINE TRADES. The first is the EUR and the second is the GBP. The GBP trade combined with resistance to make a nice entry.
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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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