Good Afternoon,
We had the pleasure of receiving the FOMC statement - no change
there. But could it be "buy the rumor, sell the fact?" What about the
ECB tomorrow. If they come out with the same stance and don't do
anything drastically more accomodative, could we see the same thing?
So far, weakening fundamentals haven't been able to get us through
the 1600 double top in the SPX. Will poor(er) economic data push us over
the top?
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.
Contrasts: Longer-term versus Near-Term Dollar Moves
The U.S. dollar is at the heart of many forex trades and the price action longer-term with the prospect of a winding down of Qe is bullish but the recent transition in the trend shows that the problem is not whether QE will end but when and until that is know, the U.S. Dollar could continue to chop sideways.
The problem is that the dollar’s uptrend is no longer valid and to expect higher high and higher lows in this environment will be instead met with the volatility and unpredictability of a distribution market trend.
Raghee Horner