EUR/USD Even Closer To Its Lows
Good Morning,
Well, we got the jobs data and as my old research analyst used to say: "Eh! and then a "Hmmm". He would say this when data would come in on the screws (not far from expectations). More importantly, the data isn't strong enough to keep the Fed from mingling, but isn't weak enough to get them to meddle in the very near future. So, "Eh!"
As a result of the number, the SPX is off and the VIX chart I showed you yesterday is popping off support. If you were paying attention to the weekly jobless claims and watching them rise, you probably could have put together a "risk scenario" for equities based on a modest to weak unemployment report and thus, could have surmised that purchasing VIX calls is equal to paying your auto, health and life insurance premiums.
Technically, the SPX is barely off its bull run highs. Yesterday, we were 3% below the 1420 high and even after a sluggish jobs report, we are only off 4% - well within reach of highs if the "QE rumor" comes back into play.
Another sector that has done quite well as of late is the commodity sector. USO was creeping up towards 33, but seems to have some resistance in the 33.50-33.75 area.
GLD still has a trendline intact that is providing solid resistance:
Past performance is not indicative of future results
Moving to forex, the EUR/USD is sitting just above the major bear run lows around the 1.2300 handle. If equities worsen, will we see a BUFFALO BOUNCE opportunity? Will we see the 1.2287 level taken out? It seems likely that if any more European "troubles" arise, the 2010 low at 1.1875 could be the next target. European vacation anyone?
Tip of the day: Look for the LUNCH RUN TRADE
Link to next week's IBFX "Trend Webinar"
Happy Trading and Be Environmentally Cool and "Eh!"
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
