Sir Pipsalot's Monday Market Outlook for 11-22-2010

Hey folks,

There's no forex news due out Monday, so I'll preview this week's news events in one signal later Monday evening.  My plan with my signals moving forward is to preview all the major news events in one signal early in the week, then post additional updates as necessary throughout the week to cover any insights I may have to the trends and price action on the forex pairs or markets I'm focused on.

Right now, the biggest thing I'm looking at in forex is to short EUR/USD on this rally.  My plan from last week as you might remember, was to short EUR/USD between 1.3760 to 1.3900 and that plan remains relatively unchanged with us now at 1.3761 just shy of the 38% retracement of the November selloff.  Because I'm looking for at LEAST a selloff to 1.3300, I'm going to throw a SL of 1.4000 on this trade, with an initial TP of 1.3370 and potential further TP's of 1.2930, and 1.2480.  I do feel EUR/USD has some potential for an even bigger selloff to new lows below 1.1891, but if that's the case, I'd rather grab an earlier piece of it, then look to get in another trade short later if the odds improve.

In the futures and equity markets, the S&P 500 is starting to look overbought and due for some sort of turn lower.  I don't have a specific plan there just yet, but I'm watching it closely and doing a bit more research and should have a medium term trade plan put together soon.  I'm just giving a heads up since I haven't covered the stock market in my signals for a couple months.

To Our Success!
Sir Pipsalot

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