The View Down River
Friday, 1-27-2006
EURO FX (EC)
What a day. Things are continuing to improve. The trade is now up 36 points per contract. I think there is still some wood to chop through this area and with the data next week, it may be a little choppy. I am seeing a move up possibly out of the gate next week as things return to equilibrium. On the postive side, Euro FX closed within a key zone for me, but we are pulled back right on a launching area. Once we get a close down in the 1.2075 area, I will feel much better and plan to add here.
If price does move up, then I am looking for the 1.22 area to contain. A move up to at least 1.2170 is likely and another run up toward 1.2277 could occur.
I did find it interesting that the GDP data did not have more of an upward effect. This is sending a strong message in my opinion, however volume is still well below average. I saw a lot of exodus hitting today. Lot's of indecision, but some buying seemed to appear near the end of the day at this level.
Let's take a look at how things are doing....
The dollar index closed just where I had hoped at 89.33. I think it is still vulnerable to a bounce down short term, but this is very bullish to me and a leading indicator.
The USDCAD position is churning and coiling tightly at the bottom. I guess the OPEC wizards kept this loonie currency down today. I am still extremely bullish at this level, but the bottom may still be tested. If the break does occur up, then this could be an explosive move in my opinion. I still think it is a good time to load up the wagon here.
USDJPY held a very bullish channel today. Obviously, things are going to be rocky going into 118. I do see a probable move down to 116.91 and maybe onto 116.26. If it does occur, I would be a buyer here. Or a buyer once above 118 area.
Again, Gold is setting up for the big move down. Heading into the mid 400's. First stop will be around 510 or so.
Crude is headed for the 40's. Next focus number should be around the 52 area in the not too distant future.
indexes - Bounce has begun. DOW 40,000 or so. hehe.
Of course, one unusual syllable or weird NFP could blow up the monitors either way.
It's all in good fun or good trading. Focus on creating wealth. Take controlled risk and be rewarded. I love the USA.
DownRiverTrader
Friday, 1-27-2006
EURO FX (EC)
What a day. Things are continuing to improve. The trade is now up 36 points per contract. I think there is still some wood to chop through this area and with the data next week, it may be a little choppy. I am seeing a move up possibly out of the gate next week as things return to equilibrium. On the postive side, Euro FX closed within a key zone for me, but we are pulled back right on a launching area. Once we get a close down in the 1.2075 area, I will feel much better and plan to add here.
If price does move up, then I am looking for the 1.22 area to contain. A move up to at least 1.2170 is likely and another run up toward 1.2277 could occur.
I did find it interesting that the GDP data did not have more of an upward effect. This is sending a strong message in my opinion, however volume is still well below average. I saw a lot of exodus hitting today. Lot's of indecision, but some buying seemed to appear near the end of the day at this level.
Let's take a look at how things are doing....
The dollar index closed just where I had hoped at 89.33. I think it is still vulnerable to a bounce down short term, but this is very bullish to me and a leading indicator.
The USDCAD position is churning and coiling tightly at the bottom. I guess the OPEC wizards kept this loonie currency down today. I am still extremely bullish at this level, but the bottom may still be tested. If the break does occur up, then this could be an explosive move in my opinion. I still think it is a good time to load up the wagon here.
USDJPY held a very bullish channel today. Obviously, things are going to be rocky going into 118. I do see a probable move down to 116.91 and maybe onto 116.26. If it does occur, I would be a buyer here. Or a buyer once above 118 area.
Again, Gold is setting up for the big move down. Heading into the mid 400's. First stop will be around 510 or so.
Crude is headed for the 40's. Next focus number should be around the 52 area in the not too distant future.
indexes - Bounce has begun. DOW 40,000 or so. hehe.
Of course, one unusual syllable or weird NFP could blow up the monitors either way.
It's all in good fun or good trading. Focus on creating wealth. Take controlled risk and be rewarded. I love the USA.
DownRiverTrader
Quote from downrivertrader:
Thursday evening, Jan 26th
EURO FX (EC)
Well...things are looking a little better, albeit not great and there is a fight ahead. Price is at 1.2229 and slamming into some key support areas. Could pop out of here and move up a little. I have moved back to being down 69 ticks per contract.
I would not be surprised to see price take a move back to the topside one more time. If this does occur then I have the 1.2320 area containing it. What I would really like thru the current level is to see an unbelievable GDP number to propel things thru all the key support areas clustered just below. This is likely wishful thinking at this point.
My long term conviction is still solidly lower. The first test will be just below 1.10. If we get thru here then my exit will be
EURUSD = 1.0000
For Tommorrow....
The dollar index needs to close above 89. 13 or so and I will be very bullish near term. It's making a nice run so far.
The USDCAD position is acting a bit "loonie" and I wish I could buy more but I am loaded up.
USDJPY has performed just as expected and will be running up thru 118 near term. Then on to 145.
Gold is setting up for the big move down just nicely. Heading into the mid 400's.
Crude is headed for the 40's.
And hey, that little bounce in the indexes is making progress. The big down volume was the clue. I would also take a close look at the bond chart...I think there may be a good long term short trade that could help make a lot of people wealthy in the near future.
I love this country and I will stand behind her, and guide her and have faith in her ability. At least until my stop gets hit, but for now I am fully loaded for wealth creation.
You have to see that this is just a pullback in the downtrend. Just think about it. It's not hard to see.
Good luck everybody.
DRT
