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Turning 24-hour traded market momentum into actionable trading potential TheLFB is at the forefront of new-generation 24-hour global market trade support, offering an outsourced global market analysis program and White Label service. The company provides a subscription service for all level of... More
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  • Daily Global Market Review 0 comments
    Jan 18, 2012 6:53 AM

    The daily updates will focus on 4-Hour mid-term analysis, and overall asset correlations in any given session.

    Current Outlook
    As the chart below highlights, there is very little alignment across global asset class trade, which historically has lead to volatile intra-day price action and unsustainable order flows. The overbought equity indices and bullion reads confirm that near-term resistance areas and previous session highs could be hard to break and then easily hold.

    Tenured traders are likely to be reducing exposure to any position taken, and then studiously monitoring the mid-term trend and momentum reads for potential break-outs, accepting that the current outlook is for very weak price action. Until the trend reads start to align across most asset classes, and until the Neutral reads confirm one direction or another, the constant test and reverse off both support and resistance will dominate procedures.

    These are very mixed reviews, which reflect a very mixed outlook for forward price action.

    Global View

    011712_GMR
    * See Table Notes below

    Commodity Update
    Near-Term Support and Resistance:
    Gold: Sup 1625 Res 1675 Neutral 1656. Silver: Sup 28.60 Res 31.05 Neutral 30.10. Oil: Sup 98.75 Res 102.50 Neutral 100.30. 

    Equity/Dollar Index Update
    Near-Term Support and Resistance:
    S&P500: Sup 1275 Res 1305 Neutral 1290. Dax: Sup 6220 Res 6280 Neutral 6230. DXY: Sup 79.50 Res 81.95. Neutral 81.45.

    Currency Pair Update
    Near-Term Support and Resistance:
    EUR: Sup 1.2610 Res 1.2870 Neutral 1.2720. GBP: Sup 1.5290 Res 1.5435 Neutral 1.5345. JPY: Sup 76.35 Res 77.75 Neutral 76.80.

    * Global View Table Notes
    When 4-hour chart trend and momentum reads are aligned across Equity Indices, Commodity, and Currency asset classes, a trending market is more easily achieved, and trade exposure and initial targets are generally increased. When trend and momentum reads are not aligned, a choppy and overlapping period of trade is more easily achieved, and trade exposure and initial targets are generally reduced.

    A long trend that is over-sold generally sets up for a long reversal off support. A short trend that is over-bought generally sets up for a short reversal off resistance. Markets that are over-bought into a long trend, or over-sold into a short trend, can remain that way for a long time. Any positions that are taken against the 4-hour trend will have to absorb choppy and volatile price action.

     


    Bull or Bear, trader or investor, the above content reviews both sides of any situation with impunity in an effort to create fair and balanced output. Reactive markets require reactive analysis and an ability to accept changes as they happen. A headstrong opinion may be an impediment in the new-generation roller-coaster global trading arena; however, a systematic process of balanced analysis will be an asset in any environment. Information, analysis and methodologies provided are for informational purposes only, obtained from sources believed to be reliable, and should not be used as a replacement for research by an individual investor or licensed investment professional. In no event should the content of this correspondence be construed as an express or implied promise, guarantee, or implication that profits or losses can be made or limited in any manner whatsoever. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

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