What an end to the week, aren't you delighted with everything you see? My last post I went through the tricks of the INVISIBLE HAND that I saw go to work late Thursday afternoon. The downside momentum that started in stocks on Wednesday has been thwarted and all is well for those who are too busy to have a clue! How much longer can these shenanigans go on? As long as the masses of the investing universe continues to drink from the intoxicating punchbowl the FED continues to fill and keep flowing. I promised to have some charts and let me show the first, this is how the US Stock Market finished this past week. Here you go, as healthy as can possibly be, have a look
As you can see, firmly on top and the cracks that started to appear the past couple of weeks have become a thing of the past, at least for now.
3 Big Events to watch out for this week
First, the markets will be watching to start the week, the election results out of Italy on Monday.
Second, the Maestro- Ben Bernanke will testify on Tuesday and Wednesday, that should be fun!
Third, the sequester cuts should be reality at the end of the week. Will the Republicans hold their ground or will there be a GRAND Bargain pulled out of the hat by our Bi-partisan government?
These are not to be overlooked and could easily have the image above not looking so pretty at the end of this upcoming week! I hope you don't mind me having a little fun with this but I must say I fear for the future of this country.
Onto some charts and what I see. First lets look at a WEEKLY of the US Dollar. We finished the week slightly above 8150 and I have this feeling we will run up a tad to start the week at least up to strong resistance that I see at the 82 level. If we get above 82 and hold above it, the dollar rally will have gained some momentum and if this happens I believe things will be turning ugly in other markets as far as global equities. Here is the weekly chart on the dollar
Now we are going to look at the Euro, it finished below 132 and maybe from what I can see and with the help of uncertainty from Italy, a test of 130 could be in the works? Let's watch closely what happens to start the week. Here is the Daily chart on the EC
Next, lets take a look at the CAD. I see support at 9750 and I am aware that Retail Sales in Canada released Friday morning were disappointing and Inflation #'s were softer than expected as well, with that being said if 9750 fails to start the week, look for more downside. Here is the Daily CAD
Lastly we have my favorite, The AUSSIE which ended the week on a strong note from comments from RBA Governor Glenn Stevens late Thursday night during the Asian trading session. The upward momentum continued on Friday as the Aussie tracked the gains in the US equities. If this rally has any chance of continuing, it will need help from the equity markets. Have a look
As far as GOLD&SILVER- I was not impressed with the bounce we had on Thursday and the way we finished the week. Yes Gold got a late bounce in thin late trading on Friday due to the fact that the UK has lost its TripleAAA credit rating. Let's see how we trade to start the week. I love the metals but technically I am aware that we may see some more downside. If we do not, GREAT I will jump in and trade with caution, quick and nimble for now!
I hope you found this helpful for the upcoming week and hope to have much more this week. I hope everyone is enjoying the weekend. I am spending time with my family and enjoying watching my daughter play in a soccer tournament. Two games today in which her team was victorious and one more early tomorrow morning. Oh and in case you are wondering, the weather is nothing short of spectacular, nice breeze, temps in the mid to upper 80's and plenty of warm sunshine. There is no better place to be this time of year than South Florida, that is of course if we are talking the US.
Anyway, thanks for reading!
Let's remember there are key events this week and we need to stay on our toes!
Thanks Again,
Martin
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