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Archive for July, 2010

Euro Explodes, Gold Implodes, Stocks “Eh”

July 1, 2010 Leave a comment

The EURUSD exploded today out of an "Inverse-head-and-shoulders pattern" which should lead to continued strength. Short interest, as I've pointed out many times, is still extremely high and a correction in the the buyer/sell imbalance is underway. The profit zone I am looking for is between 1.28-1.31.

Eurusd

Gold got slathered today as it broke down out of a failed triangle breakout.  The size of the failure goes to show how long market participants are. A long-term trend-line exist around the 1170 level. 1130 is the 200 day ema & sma. Looking at the long-term weekly chart there is a massive rising wedge forming which should break to the downside sometime in the next 1-3 months. I will delve into this pattern more at a later time.

GoldGold daily

  
Equities look oversold in the short-term and with tomorrow's jobs number we might get an interesting opportunity to buy a depressed market, which has essentially been pricing in bad news for two weeks straight. The S&P 500 is down 100 handles and the Nasdaq 100 has been down 9 days consecutively. Unsure as to how high a bounce will take us, but a very compelling trade opportunity could be less than 24 hours away.

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