Trade Desk Client Note
Global Futures Market Review
Massive Swing Point On Global Risk
Latest Market Update:
- The oversold equity rally off October lows imploded with an overbought reversal, giving back gains just as quickly as they were generated. S&P 500 is negative for the year, again, and back to the Dec 1998 closing prices. Buy-and-hold is officially dead, long live Buy-and-sell.
- Take care selling into the initial risk aversion moves; most asset classes have hit Daily chart technical support areas. Signals will follow if the next upside test of resistance fails, which will likely set the tone for trade going into year-end. Trading 24-hour Futures contracts allows control over the ups and downs that hit ahead of the cash market open, and is one way to negate the volatility of price gaps as regional trade gets underway.
- Commodity Update: Gold: Sup 1680 Res 1740 Neutral 1725. Silver: Sup 32.50 Res 35.20 Neutral 34.50. Oil: Sup 89.20 Res 93.70 Neutral 92.50.
- Equity/USD Update: S&P500: Sup 1205 Res 1270 Neutral 1255. Dax: Sup 5650 Res 6310 Neutral 6230. DXY: Sup 75.60 Res 77.90. Neutral 76.15.
- Forex Update: EUR: Sup 1.3570 Res 1.4090 Neutral 1.3995. GBP: Sup 1.5885 Res 1.6150 Neutral 1.6070. JPY: Sup 76.70 Res 79.90 Neutral 77.75.
Previous Market Updates:
- Trade Signals have been issued to clients on S&P 500, EUR, and JPY Futures contracts. Trade Plans have already caught the initial moves moves. Trade Signal S0857, Short Eur/Usd is in the green, and should now have the S/L at the entry point. Things may get extremely volatile.
- Client Note On Friday- "Dollar Index Review: Look to buy-the-dip as attention turns from EU debt and towards USD-based lines of credit." Since that update a 200 point move higher has unfolded.
- A 5-minute spike sent USD/JPY higher by 300 pips, in-line with news that MF Global may be filing for bankruptcy. QUOTE: JAPANESE FINANCE MINISTRY INTERVENED IN THE CURRENCY MARKET AND WILL CONTINUE TO DO SO. MOVE WAS DUE TO STRONG SIGNS OF SPECULATION.
- Trade Signal S0856 Long Usd/Jpy issued last week with Entry 76.35 has gained 250 pips.- Near-term overbought risk markets may struggle to move much higher without testing support. Daily chart SMA areas will also impact trade.
- In 10 weeks the S&P 500 has made 10 consecutive moves up and down that each average 10%, with a daily trading range of 3.3%. Danger signals are flashing for those who remember how Oct 2008 unfolded. In response to the violent moves in global markets trade the Technical Charting Review area has been updated with new detail on Equities, Commodities, and Currencies.