GBP/USD and EUR/USD Find Support

Wednesday, Sep 14, 2011

 

Support is holding in the SPY. Before we get to the technicals, a quick review of the fundamentals.  Retail sales were flat and PPI (of non-importance due to Federal Reserve policy) was flat. Tomorrow, we get initial claims. I am expecting it to be flat as well. If the previous relationship holds, then flat economic data is positive for the equity market.

Technically, we still have some room to go to the upside, but I am not convinced that flat economic data is good enough to get us there.

To the charts we go. Support is working for SPX as we continue to bounce off a now more critical 1140 level:

Past performance is not indicative of future results

Speaking of SUPPORT, check out XLF and F:

Past performance is not indicative of future results

Past performance is not indicative of future results

Moving to the opposite of support, is AMZN doing its pre Christmas run? Yep, I said it, Christmas - we are about 100 days out.

Past performance is not indicative of future results

Check out AMZN on a 3 year and what it does in the Aug-Dec period. Are things good enough for it to surge more than the recent 20% move up and get through the 220 area? Percentage wise, the past moves signal it can do almost 100% in this same time frame. The 220 are should be interesting. Oh yeah, this time of year, you always want to know when earnings are - I think they are in mid-October.

Past performance is not indicative of future results

Moving to forex, we had a lot of intra-day equity volatility which moved forex nicely today (the equity/USD relationship is back in play) and if it weren't for my "too picky" locations, I would have been 2 for 2, but I decided to give it a little more room and just missed a few DOUBLE FALL LINE TRADES. First up the GBP/USD and then the EUR/USD

Past performance is not indicative of future results

Past performance is not indicative of future results

Happy Trading!

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.

 

 

Posted By: 

Brian Kahn

Brian provides regular commentary focusing on the relationships between various financial markets. An experienced trader and portfolio manager with over 15 years in the markets, Brian relies on fundamental and technical analysis to create trading plans for each and every market entry.