Be Vigilant About Where The Action Is
Folks, let’s keep it
short and to the point today. We are heading into a long holiday
weekend so your plan of attack on the opening needs to be focused and decisive.Â
After the opening 90-minutes if you are still looking for trades you likely did
not set your tee-time in advance, as most traders will be looking for a birdie
on the first hole.
The news from Yahoo
and Dell has put a nice bid in the tape,
while poor jobs numbers out of Canada have changed the dynamics in the
Canadian Dollar (USD/CAD) and the Canadian
crosses. That being said there are some trades setting up in Canadian based FX
trades.
With regards to HVT,
Wednesday was a very solid day as the Oil Drillers (OSX) put on a nice
sprint to the upside late in the morning offering moves of nearly $1 in some
stocks (i.e. SII), while the late day
session provided a minor gain in a Rubber Band Trade
in JCI. If you continue to scratch your
head each day with HVT you need to isolate the stocks that are in play. This is
a departure from the original HVT premise, however, with changing markets, one
must adjust their style…slightly. All the techniques are the same, buy
pull-backs in up-trends, short rallies in down-trends, the difference now is
being vigilant about where the action is. This market is so rotational day by
day, traders are left with no other choice.
As a side note and way to illustrate some
techniques I use for FX trades, take a look at the EUR/CHF.Â
I, as well as subscribers to my
FX Service have been short this pair for a few days now. The
initial reason for the trade was technically based, however, with tensions
rising in the Middle East and the European economic recovery in doubt, the macro
back drop has provided a nice catalyst to drive prices lower. The 200 ema is
the only level standing in the way of an eventual price target of 1.53.
Have a great weekend. My colleague, Bo Harvey
will be writing Monday’s columns. As always, feel free to send me your comments
and questions.
Dave