Forex "Fireworks" as GBP/USD Gets Jiggy
Good Morning,
Sell in May go away?
As I said, we are in a new economy and no one knows wich way we are going to go. But, if you use technical analysis and pay attention to fundamentals, you have a great understanding that bad news can't make the markets go down and good news makes the markets go up. See today's ISM Manufacturing data: a positive headline number and the sub-components were strong as well (unemployment and new orders).
Looking at the technicals, we had a "busy" day in forex with a 65 pip move down in the GBP/USD and then a 45 pip move back up. Looks like support at 1.6185 was "recent support" and looks like the 61.8 Fibonacci is acting as short term resistance. Could you get a DOUBLE FALL LINE TRADE off?
Past performance is not indicative of future results
In the SPX, we may have a double bottom - although it is hard to call a chart pattern a double bottom in an uptrend/sideways consolidation. Regardless, could this pattern take us above the recent highs at 1425 and into new "bull run" territory? If this is the case, the upside seems open to the 1475ish area.
Past performance is not indicative of future results
The markets are telling us something - they don't want to go down. Listen to them and get out of the way unless you are trading strategies aimed at reducing portfolio risk. If you are putting on "risk reduction" strategies, please know that the portfolio and the risk reducing position could lose money - there are no guarantees out there and "relationshipal" trades don't always work. Sound money management and trading plans are essential for every single trading strategy.
Happy Trading
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.
