Profit Mongers @ 2:46 AM, Friday May 28 2010
Hey folks,
Sorry I went MIA for a couple of days, but I'm back. I haven't been terribly active trading the last few days, but I've been keeping close track of the market and my views really haven't changed much for the last week, so I felt little need for an urgent update.
On EUR/USD, most analysts I trust have turned bearish medium term looking for an extention lower to maybe 1.1900 at least. I still am not quite convinced personally. As long as we hold above 1.2200, I think a very solid chance of further upside exists that should take us to 1.2650 and probably beyond pretty soon. However, if we break below 1.2200 today, I'll abandon that bias in favor of a medium term selloff to 1.1900 and potentially a bit lower. So, essentially on EUR/USD I'm still in buy on dip mode as I have been for the past week, but I'm close to abandoning it based on what the Euro does today.
On stocks, we've really called it perfectly here picking tops and closing it all down within a few points of the lows. Now on this retracement up, it looks like it will last at least one more day and maybe into early next week. I think the ideal place to short is in the 1110-1120 range (just about 10-20 points higher from current levels). Pick a SL appropriate for how much profit you're looking to make on the trade. If you're going to take all your profits ahead of this week's lows, I'd try a 20-30 point SL. If you're like me and you're going for 100's of points for most of the position short, use a solid 50 or even 70 point stop.
In news Thursday, USD GDP came in a bit low, but not really low enough to trigger a trade or much market reaction, especially since it's in bounce mode. In news Friday:
0830 There's a bunch of US Data, but none of it is really tradable in my opinion. Giving that the market is in rally mode, it will probably look for a positive spin on the data, so look for shorter term USD/JPY or stock future long scalps as long as the data doesn't come out bad.
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
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Sir Pipsalot
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