Did You Get This Letter Too?
The Dollar Index (DXC)/dollar
took center stage yesterday. While the direct beneficiaries were the
gold stocks, although not all remained strong through the day, the stock market
held in very well. This appears to be a market impervious to most negative
news. Bad news from Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating) was also
not much a of a drain. Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating) after the close was optimistic going
forward. According to Fred Hickey of The High Tech Strategist,
NOK is one of TXN’s largest
customers, with their sales off, something seems odd. Well, I will leave that
for debate which does not result in a trading opportunity. A move above 1035 is
required for the market to make a sustained move higher
In terms of trades, it was not too bad, although
yet again, one trade spoiled the party, and ironically it was long in
Newmont
(
NEM |
Quote |
Chart |
News |
PowerRating). The other trades were a nice
Fade the Gap on
Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating) and a short sale in Citigroup
(
C |
Quote |
Chart |
News |
PowerRating).
The trade which continues to be the real producer
is the long Euro (EUR) trade from last
Friday, although I am beginning to see some signs of fatigue. This was one of
those FX trades that was based more on technicals than fundamentals, as a result
I must respect some key levels in here. The 60 and 120-minute charts are
hitting some resistance and the oscillators are overbought. This may require
scaling out of half. The other half’s exit point will be determined if the
EUR breaks 1.1181. Either way, it will
protect a nice profit from an entry point of 1.0989.
A trade to keep an eye on for a longer term-long
is the Swiss Franc (USD/CHF). The weekly
chart is forming a nice continuation pattern after a recent sell-off and looks
poised for a move to 134 or even better.
A couple of big economic numbers out tomorrow
will likely put the brakes on the afternoon session (can it really get
quieter?). So make your moves early and be selective afterward.
I received this email from my clearing firm
yesterday afternoon. While there is not much one can do, it is one more burden
that traders must shoulder:
Dear Trader,
The NASD has
implemented a fee that goes into effect immediately: the Trader Activity Fee (TAF)
is $0.0001 per share on the sell side (or $100 / 1,000,000 shares sold).
Oh well.