Profit Mongers Monday Trading Signal 3-08-2010

Hey folks,

Just a short update today.  The EUR/USD did indeed rally off 1.3550 support as I predicted Friday and has worked up near 1.3700.  With the waning stages of stock market strength and risk appetite, we'll likely see a break of 1.3700 and levels near 1.3800 early this week.

Also, USD/JPY and pretty much every yen cross has rallied along with my Friday forecasts as well.  I'm not sure how much follow-through we'll get this week, but I would definitely look to get long on a decent dip as long as the BOJ doesn't come out in support of a strong JPY or a convincing top has not yet been set on stocks.

Stocks continue what I believe to be a terminal rally phase before the next concerted selloff, but I have had trouble timing the turnaround on this extended move, so as I mentioned repeatedly last week, I'm waiting for clear, confirmed signs of reversal lower before I consider any shorter term trades.  Long term of course, I believe stocks are poised very well for a short.

In news Friday, we had employment figures come out slightly better than expected, but not enough to warrant a clear trade.  Even with the small surprise, USD/JPY took off for over 100 pips and EUR/USD sold off 40 before whipping back around higher.  There's no economic releases planned for Monday or Tuesday this week, so the next news items we'll preview will be fore Wednesday.

That's all for today's update. If you'd like to learn more about trading or trade along with myself and my collegues, come join us at Profit Mongers.  Our subscription is very reasonable at $179 per month, and right now you can sign up for a 2 week trial to get started for only $29. This offer is for new customers only.  Feel free to email me with any questions at sirpipsalot@profitmongers.com

To our success!
Sir Pipsalot

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