Good Afternoon,
For additional reads on the Bernanke statements, please refer to fundamental analysis stories such as this Bloomberg article.
Yesterday's post contained a very important statement. It was the last sentence, which read: "continue to do your fundamental analysis every day". That is very important, especially when Central Bankers are speaking. Today, Bernanke gave us the fireworks.
I also put in yesterday's post a technical snapshot of the SPX; with a trendline at the tops of the past few days. Well, today, it held again:
Past performance is not indicative of future results
We still have two very busy days left in the economic calendar - claims and durable goods stand out Obviously be wary of more Central Bank speak.
Moving to forex, we had another above average trading day. This time, the EUR/USD gave us our favorite BUFFALO BOUNCE trade:
Past performance is not indicative of future results
So now I leave you with this: what next for bonds (interest rates) and the equity market. Will soft economic data (I do believe we will see stagnant/softer data) keep the Fed involved? Will stronger than expected data give the equity markets an upside boost even though they know QE is ending? Will the dollar break out of it strange and move higher agains other currencies? Take a look at the USD/CAD breakout:
Past performance is not indicative of future results
I look forward to seeing you tonight on the IBFX Technical Analysis webinar.
Happy Trading and Be Environmentally Cool
Coach Brian
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
