Our fundamental views continue to hinge on Europe. As austerity measures continue to push forward, is the success of government intervention priced into the markets? On the "regular" data side, we had retail sales today - bit softer, but nothing out of the ordinary given our recent batch of good news over the past 6 months. If gas prices continue to climb, do we see a stall in retail sales. Maybe, but it won't be because of oil prices. We as Americans have had much higher gas prices and are totally willing to pay for them. How do I know this? Well, Ford dropped its Hybrid Escape SUV for 2013 and more importantly, why are all electric cars so ugly? Is it a deal between big oil and carmakers to make totally unattractive electric cars? Oh yeah, we still have Bernanke, claims and yaaaawwwn, inflation data.
Technically, check out the EUR/USD as it broke hard yesterday, even when the equity markets finished near their highs of the day. Then, today, we have the USD continuing its upmove while US equities open lower. Did the strength in the USD yesterday afternoon lead equities to open lower today? Overall, 1350 is still resistance in SPX:
Past performance is not indicative of future results
Technically, does XLF lead the markets? The financial sector used to. Check out the MACD as it is showing a bearish divergence. If you listened to last night's webinar, you heard me talk about trends and a great technical indicator for trends: moving averages. In the next webinar, see how we adapt moving averages into the MACD (Moving Average Convergence Divergence) to show "bearish divergences" and see if the trend is losing steam. Is the trend on XLF finally losing steam? The MACD says yes:
Past performance is not indicative of future results
Thursday Metastock Webinar: http://www.equis.com/events/webinars/?t=SEMWEB-TIBM&p=37637
Feb 29 MACD Webinar: https://www1.gotomeeting.com/register/542544601
Happy Trading and Be Environmentally Cool
Coach Brian
Forex 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