GBP/USD Buffalo Bounce and the Fed
Bernanke is speaking and the USD is getting stronger. No mention of additional measures yet. Is he waiting to see economic data worsen before doing a late summer addition, which also helps the President? Other fundamentals: earnings, claims and Philly Fed.
Technically, the EUR/USD is sitting on the 1.2200 handle as the USD strengthens in response to Bernanke saying: "we are open to the fact that we may need to do more, but at this time, we are holding tight". If the EUR/USD breaks further, could we see a BUFFALO BOUNCE?
Notice I haven't been posting too many equity charts as of late. That doesn't mean there hasn't been movement or areas where sound trading plans can be implemented. But let's face it, there are very, very sideways markets. From GLD to the broad indexes, ranges have been the norm. That being said, option strategies are a must and implementing covered calls and cash secured puts seem to be working in this "bullish to neutral" market. I am "bullish to neutral" due to the ongoing central bank intervention.
It is worth talking about and posting the "defensive sector". The necessities. Take a look at XLU, JNJ and WMT. Here is a chart of WMT:
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