John I really think "hurting the yanks" is the furtherest thing from the European's minds....with the European bail outs just starting they are just behind the curve thats all...dunno u complainin about beautiful gap close today...with great tradeable levels...
something from the left field to consider. The USD Index is very, very bullish and been climbing since middle Dec 08. It's 86.50 at the moment and aiming to break the 89.20 high of late Nov 08. While it is overbought history shows it can stay overbought for a long time and that overbought levels on this index often trigger a rally. If the USD does indeed rally then stocks are going to take a thumping, especially resources. This morning the EURUSD broke down through 1.30 for the first time since late Oct 08. The 1.30 level is significant and implies more downside for stocks. I reckon a gap close today is a great short opportunity.
Ya, things are a bit overdone at the mo. My EURUSD chart shows a high chance of a bounce back into 1.30 and even 1.31 to get daily indicators up from oversold levels and probably on the back of an "O" bounce but then methinks the USD Index will go on a rampage on Dollar buying and will disillusion the markets big time. I expect the USD Index to break up through 90 within the next week. I'm definitely looking for stock short entries on any bounce from here on
Nova so if the dollar remains strong,only resource stocks will come under pressure or all stocks,mtn etc??what would you reckon is a good short entry point at this stage??entry at the gap close??Cause acl,agl,bhp dont look like it gona close gap today
everything imo, but then I can't really have an opinion as I trade only index futures and FX and only hold stocks with 5 year or longer view. What's important is that this gap closed yet the USD stayed strong and that pretty much guarantees a reversal after the gap close. Chartist, John et al called it spot on.
mmm, guarantee is a bit strong, whilst we got a pullback after breaching today's gap it looks like it wants to go back up. That short is not a sure fire thing, neither the long. What will play a major role will be the US reaction to the inauguration.