Profit Mongers Monday Trading Signal 08-16-2010

Hey folks,

I maintain the same sell bias on stocks and EUR/USD as I did last week.  I will continue to hold short with a position trade until support comes into play on the EUR/USD around 1.2420-1.2610.  We should be good to sell off down into that region likely week.  With that in mind, I'd be looking to sell any decent 100+ pip rallies.  We might get a temporary rally up near the 1.2900 area early this week, and I think that would be an ideal area to short, or sell more if you're already short like I am.

Stocks have consolidated somewhat since Wednesday's close, but retained the negative pressure.  With oversold indicators easing, we'll likely dip into the 1055-1065 support range I mentioned last week before a short term bottom kicks in.  For Monday, a sell in the 1080-1090 range looks good.  After a more convincing short term bottom is put in (maybe tomorrow or Wednesday), I may push my resell back a bit higher more around 1100 depending on where and how we bottom out.  More on that as it develops.

Check out my various signals from last week for more on both of these trends.

In news Friday, all the US economic reports I previewed came out very close to expectations unfortunately.  This also is setting up to be a pretty slow news week with only 3 UK reports and 1 Canadian report stretched out over Tues-Fri.  Because of the lack of hard economic numbers, I'd look to focus more on technicals during the more lively session hours this week than usual, except on the GBP/USD (still plenty of news there this week).

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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