C'MON MAN - We didn't see much movement in FX on Wednesday but that didn't stop the equity market from breaking to yet another record high and forcing me out of my SPX500 short. Still, I couldn't help myself with the market trading off into the close and I sold yet again to see if the bearish close will show follow through on Thursday. I'm now short 2111 with a stop at 2122. On the plus side, AUDNZD had been holding onto gains, which is increasing the prospect of a major base in the works. I actually heard (courtesy of a loyal client) a large bank came out with a trade recommendation they were all excited about which was a long AUDNZD play. So now it seems we are starting to get good company. In any event, this trade is in its infancy and I expect significant upside in the months ahead.
A CABLE TRADE? - Otherwise, it's been a big bore. We just aren't getting any movement. The Euro has been confined to a very tight consolidation since late January, and until this range breaks, don't expect much. We are going to need to see a break above 1.1535 or back below 1.1265 for clearer directional insight. But the Pound could offer a nice trade in the sessions ahead, with GBPUSD rallying through 1.5500. The trend in this market has been bearish and the gains we are seeing are viewed as corrective. There is some formidable resistance into 1.5600 and if we get up there today, this could be a good spot to sell in anticipation of a lower top. Overall, I suppose OIL is the most interesting price action over the past 24 hours, with this market bouncing out from support and looking like it wants to break higher. I believe there is room for a move back towards $60 in the days ahead. Let's see.
This analysis is for informational and educational purposes only. This is not a recommendation to buy or sell anything. MarketPunks is not a financial advisor and this does not constitute investment advice. All of the information contained herein should be independently verified and confirmed. Please be aware of the risks involved with trading in currencies, stocks, commodities, cryptocurrencies and sports. Do not trade with money you cannot afford to lose. It is recommended that you consult a qualified financial advisor before making any investment decisions.
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