This Move Past 88.30 Will Make The Perfect Setup
FX: This
morning’s comment must be brief as your editor is due to speak at the Institute
for International Research’s Commodity Investment Summit in New York.
We moved
stops in USD/CHF up to 1.2485 and are riding the dollar correction higher. We
think our expected rally in USDX from the key 87.00 level is now on schedule.
But it will take a move past the cluster of resistance at 88.30 to get a larger
correction towards the 89 handle by the end of this month. This would then be
the perfect setup for a break below the channel support as we expect in
September.
Stocks: No change: The markets extreme fluctuations look ominous. The
August-October months are historically the worst and considering that the S&P500
(
SPX |
Quote |
Chart |
News |
PowerRating) reached our key Fibonacci target of 1245 this month suggests to us a
downturn lies dead ahead. Meanwhile, the VIX
(
VIX |
Quote |
Chart |
News |
PowerRating) continues to climb since
we added to our position over two weeks ago.
Bonds: No change: The impulsive looking decline in yields from key
resistance in the 10 and 30 year contracts suggests a move back to 4.2% for the
10 year. This level needs to hold to stave off further decline in yields (rally
in bonds).
Regards,
Jes Black
FX Money
Trends
613 4th St Suite 505
Hoboken, NJ
07030
Tel: 646.229.5401