Have You Noticed This Change?
Stunning.
That is the only word I can come up with to describe this market. Regardless of
your opinion of the market, and we all have them, it just chugs higher each
day. The good news is that if you are a swing trader or investor positioned
long, life is good. For traders, I am not so sure I would draw the same
conclusion. Before you draw any conclusions, consider the charts below, in
particular the bottom section of each chart, Average
True Range (ATR).
Are there stocks that are trading with better
range? Absolutely, which is my point. For many months, even years, the above
stocks have been a staple of my day to day trading. Over time, sometimes not so
obviously, these stocks just continued to give less and less for the same if not
more effort. Time has a funny way of preventing you from seeing subtle and not-so-subtle changes.
With that in mind, the stocks and even the
markets I am trading are changing each day. Two weeks ago I threw the towel in
on the above stocks. Stocks like these below as well as stocks of the
HUI (Gold Bugs Index) are trading far better.
Most traders I talk to on a day-to-day basis are
all now talking about how they are looking at stocks they never traded before
and even at other markets. There is a valid reason I have pursued FX
aggressively. Those markets are moving, they are incredibly liquid and have
great range. Sometimes you just need to do a little house cleaning to put
yourself back on a more robust path.
I have begun to leg into a short position in the
EUR/AUD. The failure at the 50-day ema and
overall down-trend bodes well. I will add the full position on a break of 1.633
(see chart). Yes, the EUR is strong, but so
is the AUD. However, it is safe to say that
the AUD has a more solid “story” and fundamental back-drop behind it, in
addition the EUR could be vulnerable to lower ground going into year end. So,
rather than a pure play on shorting the EUR versus the USD, which is a
counter-trend trade, the EUR/AUD may be a better way to play a weaker EUR.
| Support/Resistance Numbers for S&P and Nasdaq Futures |
||||||||||||||||||||
|
As always, feel free to send me your comments and
questions.