If These Entry Points Are Hit Today, I’m In
FX:Â Â We have no positions on in
the dollar at the moment as we wait for the USDX to come back to support at the
87.00 level and then break through the two-week downtrend line to initiate a
long position. The euro remains on track to test the key 1.25 level where
traders could look to get short. An emotional selloff following the payrolls
figure followed by a renewed advance in EUR/USD to that key level would be a
great opportunity (we think) to reposition short EUR/USD. While we were not
comfortable going long EUR/USD on Tuesday’s breakout we did add to our long EUR/CAD
position that day for an averaged rate of 1.4750 and took profits on half the
position this morning at 1.5100 (as we alerted subscribers) while moving our
trailing stops up to 1.4850 on the remaining position.
Â
Â
Â
Â
Â
Â
Stocks:Â Â The VIX continues to
climb, closing above 12 yesterday. Recall that we alerted subscribers to buy the
VIX three weeks ago at 10.50 in the spot index and then again last Friday at the
same level. While a sharp spike in the VIX often signals a low in the market,
the record high sentiment readings at the key 1245 level in the S&P 500 make us
think that the VIX will see a surge in volatility in the coming days to weeks.
As such we reiterate our view that the market is very VERY close to a key top.
This means we may again have an opportunity to get short the S&P 500 in the
coming days to weeks.
Â
Bonds: Bond yields spiked this
morning to 4.38%. Yields continue to inch closer to the key 4.6% in the
10-year which would indicate to us that bonds are headed lower.
Â
Regards,
Â
Jes Black
Â
FX Money
Trends
613 4th St Suite 505
Hoboken, NJ 07030
Tel: 646.229.5401