Market trend analysis for 10th of August 2011

Stocks are going crazy

 

Hi, everyone. Certain financial markets are going crazy, especially stocks. I believe this will continue and I would not be in the stocks now. Well, I could be, but just selling them. Even though commodities are falling too, my position towards them has not changed. They are the best place for me to be in. They represent something more tangible and stable than stocks or worthless governmental bonds. I do not think that it is too late to buy gold and silver or even oil. These real things will rise a lot more and I am in silver myself. You do as you see, but be careful with stocks and bonds. One may never know when these will go bankrupt. 

GBP/USD looks bearish

 

Looking at currencies I also am for commodity currencies and maybe slightly bullish about dollar against euro, pound and a few other currencies. Looking technically at gbp/usd I see good opportunities to sell the pair when it rallies. Important support levels have been broken and when and if the pair comes back to previous support levels which are now resistance, that would be a good sign to sell it. Look at the chart below to see better what I mean. 

Good luck in your trend trading analysis.

Read my previous posts:

http://trend0.blogspot.com/2011/08/market-trend-analysis-for-9th-of-august.html

http://trend0.blogspot.com/2011/08/market-trend-analysis-for-5th-of-august.html

Disclaimer

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.

  

Market trend analysis for 9th of August 2011

Hi everyone. I hope you were not very much worried by what you saw happening in the markets in the last few days. You cannot expect not to fall from the branch you are cutting. That�s what world governments have been doing all across the board and now they are scared by seeing what is going on in the financial markets. I do not think you should be scared. At least I am not. This is due to the fact that I am not afraid of the financial collapse that is coming. This is unavoidable for the world and by fearing it you will not change anything. Better find a stable psychological foundation for yourself. I see it in the Bible. Hope you will see it there too.

So, dollar started falling today and I think that is the way should be. You cannot just borrow hard earned money from across the world and expect that everybody would accept the printed debt back. There are fewer fools nowadays as there used to be. Dollar will collapse and so will all European currencies. Hope you will be smart to invest elsewhere. The best strategy is to sell the greenback against commodity currencies. 

I do not have any charts for you today. I hope to give some tomorrow. I came back home from holidays only yesterday and hope to come back to my post writing quite soon. I believe I will give more insights for you this week regarding direction of the financial market trends. Don�t invest too much in shaky markets. Good luck.

See also:

Bollinger bands

Divergence

Disclaimer

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.

Market trend analysis for 5th of August 2011

Big day for markets: Nonfarm payrolls release

 

Hello everyone. I am on holidays at the moment and do not have enough time to monitor markets closely, so my post is going to be very short today. You know that we had a big day today in terms of fundamental news releases. Nonfarm payrolls is always a special day in financial markets as this piece of news creates huge volatility unlike any other piece of news. I would not say there was much reaction of the market to the news, but one could have still made some money from the event. 

Possibilities in eur/usd pair

 

If we take eur/usd as an example, one could have placed a long entry above 1.4180 level. Initial reaction of the market was ambiguous. It first rose, then fell back and then continued its initial uptrend. You would have exited at an even number or as I often say 10 pips before an even number of 1.4290. The best place for initial stop would have been at 1.4120 level. It could be later moved following peaks and valleys principle.

I will deal on other pairs and today�s possibilities (Friday) in a few days� time. 

See also:

Range trading

Breakout trading

Disclaimer

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.

Market trend analysis for 3rd of August 2011

Situation in US is slightly better

 

Hello everyone. Let us do a short market trend analysis for today. It seems now that US was able to avoid a fast bankruptcy and has another chance to make necessary amendments to avoid it completely. However, if a country has been going in the wrong direction for about one hundred years, it is difficult to believe that it will change the direction now. All things are possible, but one has to make right choices. You cannot solve debt with more debt. You need to start cutting it, limit spending and etc. Market trends today show that investors will probably be getting out of US dollar and putting it elsewhere. 

Bank of Switzerland scares investors off

 

Bank of Switzerland tried to scare all investors out of Swiss Franc by cutting interest rates close to zero level. This will make it very attractive to borrow Swiss Francs and put them elsewhere, where interest rates are much higher. Swiss Franc has been doing very well for a long time and this trend can continue further, but one never knows if big dogs will be happy to buy Swissie at such high levels. Be on guard and closely watch what happens. 

Possibilities in gbp/usd pair today

 

GBP/USD formed a nice reversal pattern yesterday and today after fulfilling head and shoulders pattern on Monday. You can see an inverted head and shoulders pattern on 1 hour chart and one could have traded it by simply placing a long order above 1.6330 level (resistance) and exiting at an even number of 1.6400. This would have been a typical technical reversal trade. 

See also:

Head and shoulders

Breakout trading

Disclaimer

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.

Market trend analysis for 1st of August 2011

US politicians will probably agree on debt ceiling

Hi, everyone. Let me do a quick market trend analysis for today. As you may have noticed US politicians will probably agree on debt ceiling and postpone the inevitable collapse. It is good when one can win some time. However, it has to be used wisely by making the right decisions, not faulty ones. It looks like markets are pricing in a positive decision as dollar has been strengthening across the board. Let us look at gbp/usd pair a little and its behavior today. 

How one could have traded gbp/usd today

As most currencies, pound collapsed against US dollar too. Before moving down it formed a nice head and shoulders pattern and with some expectations from big dogs as well as huge amount of money the pattern was confirmed when the 1.6385 level was taken out. You can probably guess that one of the best ways to have traded it was simply to place a short order below the level with a stop loss around 1.6470 level. As you may understand the most logical place to exit the trade was 1.6260 area (previous support). 

See also:

Head and shoulders

Triangle

Disclaimer

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.