Profit Mongers Friday Trading Signal 04-16-2010

Hey folks,

The EUR/USD has double dipped into support here in the low 1.3500's, and as I've said all week, the Euro is a good buy here between 1.3500 and 1.3550, so I'm recommending short to medium term longs anywhere in this range (currently 1.3545 and hit a low of 1.3521 earlier today).  Some slightly negative news on Greek bond offerings this evening has given the Euro another entry opportunity in this area.

If the Euro does bounce off of this weekend gap fill as I suspect I recommend defensively taking some profits around 1.3620 (61.8% of downmove), but a break higher to the high 1.3700's is a strong contender, so I plan to take incremental profits every 50-70 pips or so until just shy of 1.3800.  A trade through 1.3480 would be enough to push me to neutral and change my outlook, so naturally that's a good area for an SL.

On stocks, for now I'm waiting for a more confirmed reversal through 1185 to signal sharp follow-through lower.  Until we get that or a similar confirmation of reversal down the road, I'm out of the market on standby.

There's little news out this week that's tradable as far as economic indicators are concerned, so nothing to report on there until next week.  Keep giving those technicals some love until the short term fundamentals come back.

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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