Comments for Friday, November 19, 2010
Looking Ahead to Today by Reflecting Back at Thursday’s Price Action
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors.
Higher closes yesterday for the Aussie Dollar, Euro Fx, British Pound and Canadian Dollar while lower for the Swiss Franc, Japanese Yen and dollar index. Overall I feel the dollar is bottoming and most of the currencies will top out eventually.
With the Ireland government getting bailed out and the US government attempting to keep rates low and the dollar weak, why is the dollar holding up so well and hasn’t even approached its low of 7523.5 made on November 3rd? In my opinion this is telling me the dollar is oversold and setting up for a retracement up to at least the 8200-8400 area basis the December contract.
The euro, franc and yen(in a support area) continue to look lower while the Canadian Dollar is losing some steam with toppy action but in an uptrend overall. The pound and Aussie Dollar also are both in uptrends but weakening lately with the latter looking a little toppy at this time. On the other hand, the dollar has already given me a buy signal and still looks okay technically while holding up very well so far on continuing bearish news.
BUY SIGNALS FOR, AUSSIE DOLLAR, BRITISH POUND, CANADIAN DOLLAR AND DOLLAR INDEX. SELL SIGNALS FOR THE EURO FX, SWISS FRANC AND JAPANESE YEN. CALL FOR DETAILS!
Special Note for Cotton Traders: The daily price limit for Friday, November 19, will increase to 6 cents.
Special Note for Cattle Traders: This afternoon at 2:00 pm the USDA will release the monthly Cattle On Feed Report.
Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. Email Rick at email@example.com.
The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.