Tomorrow shall be a doozy with Ben Bernanke playing puppet master as always. We had a down day in Equities today, the first negative day in 9 days! 32 points in the Dow and 6 in the S&P, not much to worry about for the bulls, they seem to be in full control and I would not be surprised at all to see a new up leg start tomorrow with a little help from Ben. Do you really think he wants to upset all of his hard work and interrupt the astounding uptrend?
Does anyone really think that he is going to change his stance from last weeks comments on how FED policy needs to remain accommodative towards the US economy for the foreseeable future? I certainly do not think so!
We had a nice move in the Euro and Aussie today, even the Yen got in on the US dollar weakness. I feel strongly that we will see a bigger move to the downside in the dollar in the coming days. The only chart I will post this evening is of the US dollar.
With the upside gap filled yesterday and the fall back today, we very well could see the $ fall right through 82 in the next 24 hours. After that we would need to see 8050 taken out to the downside to take any bearishness in the $ seriously. After last weeks comments from the FED chairman I find this scenario will play out in the coming weeks! Again I believe there are opportunities in the Euro, Aussie and the CAD to be specific and please do your best to be quick to take your profits and losses. That is the only way to make money these days, DO NOT FALL IN LOVE WITH ANY SINGLE TRADE.
Just be Careful these next couple of days while Big Ben talks and be patient!
One last thing, Gold may see a pop above $1300- I am watching $1275 to the downside for my risk, if it holds, we have that level to trade off.
Good Night
Martin
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