How Boring Can You Get?
|EURUSD - It's very hard to write when nothing is going on out there folks. I was delighted to see Gold pull back on Wednesday after exiting the position for a tiny profit on Tuesday. Right now, my focus is really on two major markets. The first is EURUSD. On Tuesday, we saw the market put in a bullish outside day formation which could trigger the start to a meaningful corrective bounce. At the same time, fundamentals continue to be quite supportive of the US Dollar and I also wouldn't be surprised to see the Euro reverse lower to fresh multi-month lows.
STOCKS - The second market which feels like it is going nowhere but really is slowly showing signs of topping out is the SPX500. This is a biggy folks! If this market starts to break down and takes out the September low at 2108, it's all going to get real busy and real ugly very fast. There has been a lot of talk about the limitations of monetary policy and slowly we are starting to see that there isn't much left to push stocks back to fresh record highs. I have a nice position on but until we take out that 2108 low, it all could continue to be quite boring. It feels like we are miles away, but in truth, it could breakdown in a matter of moments. Stand by.
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