Profit Mongers @ 3:20 AM, Tuesday May 04 2010
Hey folks,
The EUR/USD has gotten beat up a bit to start the week, but with the odds still tilted towards either further consolidation or perhaps a more substantial push higher... even if it's only a 50-50 trade at this point (I think the odds are a bit greater) the amount of pips on the upside far outweigh the risk associated with an SL below the 1.3114 lows. Right now the EUR/USD is at 1.3162, and I think a long with a 50-55 pip SL below those lows is a decent trade with initial TP around 1.3270-80 and final TP around 1.3800.
Stocks are poised for a bit of a selloff, but it could really use some confirmation to solidify. Right now S&P futures are at 1198, so a riskier (but potentially rewarding) trade would be a short here with about an 11 point SL (just above Friday's highs). For a safer trade, we need to wait for confirmation from a break below those 1176 lows from last week. Once we break those I'm confident we'll see at least 80-100 points of followthrough in the coming weeks.
In news earlier, we saw the RBA raise rates as somewhat expected, but there was a lot of anticipation of that hike, so there was some profit taking involved. Also, there's mixed language about whether or not they will hike again showing some hawkish stance on inflation, but acknowledging that interest rates have now normalized. In news Tuesday:
0430 UK Manufacturing PMI - I'm not so sure this is consistently tradable... I'm going to skip it this month
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
Visit Profit Mongers website and check out our live trading room!