Sunday, April 21, 2013

Strictly Market Talk

I don't have much time but I promised that I would post some currency charts over the weekend, so let's get it on. On Thursday, I showed and spoke of what I saw in Gold, Oil and US Stocks. All did finish higher for the week on Friday as I had pointed out support levels on all 3 markets. We will start the week to see a volatile open possibly due to the China Earthquake, all you can do is pray for the suffering. We will have the IMF meeting for the next 3 days so be on the lookout for surprise comments from that and then on Friday we will be treated to the US 1stQ GDP- expected to come in at 3%?
Let me start with the US dollar. I have pointed out that it appears to be rolling over and losing momentum. On Friday however the dollar caught a bid during the afternoon, you will see this in all the charts that I am posting today.
Could the dollar have caught a bid on late Friday because currency traders see something in the markets ahead that most are not expecting? We will have to keep an eye on the openings of the markets in Asia this evening.
Next, is my favorite currency of all, The Cad, maybe we will get a chance to buy just below the 97 handle with the Asian markets possibly opening in the red this evening due to the Chinese earthquake.
Next is the Euro, you can see, even with Cyprus a few weeks ago, the Beast of a currency managed to trade all the way back up to 132 and has since backed down this week to finish just above 13050. I am of the opinion that the Euro is on its way back to 137 in the next few months. Will it have huge down days, sure it will, I would use those days for good trading opportunities.
Lastly is the Aussie, I like it to the upside but this chart does not look as promising as it did on Thursday. All I can say is that if it does not break below 101 convincingly, we have another great trade.
It may be a rocky open to the markets this evening, do not panic and see how the markets react to support levels. We are at support on most markets, maybe we will see bad earnings this week and a GDP # that does not add up to expectations. If that is the case- Maybe the best strategy of all will be to start shorting stocks and buying GOLD! That trade is the one I love most but it has not worked in a very long time!

Enjoy the rest of your weekend. When the trading week begins, please use Caution and let things develop before you take action. Know your levels and know where you want to exit!
Thanks for Reading,
Martin






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