Good Afternoon,
Does your head hurt? It was a very, very active day of trading in forex, but at the end of it, the SPX is back above our crucial congestion line of 1250. With the good news coming out of Europe and the continued improving US economy, I think the chances of us heading higher are very good.
Next week is relativel light on the data front and usually that is bullish for the markets as we slowly grind higher. In addition, it is options expiration week, so that is usually bullish for equities as well. If you are protecting options using equities, be wary as it is options expiration week.
Overall, even though it was active trading today intraday in forex, you have to be cautious because it is December. Investment banks are handing out bonuses and Christmas parties/vacations are starting and overall traders are very tired after trying to read the markets this year.
So trade carefully and in addition to December, we have the "rumorville trade" continuing, so you have to be double secret extra extra cautious.
Technically, we were sooo weak in commodities today and then, sooo strong. Look at the AUD/USD on a 2 day chart:
Past performance is not indicative of future results
We had a BUFFALO BOUNCE on the AUD/USD today and then another double top area late in the day. A DOUBLE FALL LINE TRADE early In the EUR/USD and then a second DOUBLE FALL LINE TRADE as the USD became too strong:
Past performance is not indicative of future results
Double or triple bottom in the GBP/USD when the dollar was too strong and equities kept their bid:
Past performance is not indicative of future results
Nothing to post in the equities other than, look out above based on technicals and the possibility of a Santa Claus rally???!!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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