Thursday, May 2, 2013

Quick Verbal Currency Update

The massive positive Euro divergence (as it made new weekly lows) and massive $USD negative (as it made weekly highs) are still in effect, however the Yen is moving what appears to be to the upside on a break out from an intraday triangle, this is market negative, but again it is a short term move and it appears to have created an intraday negative in the Euro and positive in the $USD which suggests nether are going anywhere really soon, but still have a significant signal that says they will move and become VERY market supportive. However for the intraday any way, it looks like the market will not get additional support from currencies intraday at least which was a concern as the market went up this much with currencies fighting against it, how much more would it go up if those reversal signals (market supportive) were fulfilled?

For now, I still expect we move down intraday. ES. NQ and TF agree. I may be looking for a new call position in to the pullback. I may consider a short here or puts although I think they are more likely, I still think they are complicated and not my favorite trade, but if I see stronger signals on my next round of going through the charts, I will let you know ASAP.

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