Promising start to the week

Hi

Thursday should have seen our readers make a nice profit as the first close above the Weekly Pivot confirmed direction as expected and then gave a lovely step up and a nice 2% or so profit. Its another nice simple trade and I hope many of you got another winner.

Context

Overall things remain a mess. The Greek situation may get some form of resolution latter in the week and that may create a lift in the Euro. But even this should be small as we don’t really seem to have a solution that solves anything.  Spain still needs a bailout it won’t ask for, and America seems to be making only slow progress on the Fiscal Cliff issues.

All of this means the big money is sitting on the sidelines, its waiting for some certainty and markets are doing little while this happens. The stock markets are starting to price in the possibility of problems in the US but the currency markets don’t seem concerned as yet.

Technical Analysis;  Daily pivot remains above weekly pivot even if both have dropped, this gives me a bullish feel to my thinking. We have come out of the Asian session with a symmetrical Triangle and have just had the top of the triangle broken, at this point price has reacted and put in a double top but as long as price stays above the triangle I am Bullish. A close inside the triangle and I am interested in the trade back to DP.

The Day Ahead –   It’s a Monday we need to be patient and let the big money set us a direction.  Price action will scream a direction here by both taking out the current high and closing above the Triangle (BULLISH) or by taking out the last Low in which case I would be bearish.

On another day I may consider taking the current high test bar down to DP, but on a Monday I would like another confirmation first.

Bias-  Cautious, I will wait, it will tell me

 NO TRADE:  Between Weekly and Daily Pivot.

BEST Short entry; If we get a break below the current low and a pullback to any resistance I will look for the trade down to Daily Pivot.

 BEST Long Entry;  A break of the last high, and a close above the triangle would see be looking to get an entry and target MS1/DR1.

Other Entries;  If I get an aggressive sell down to through Weekly pivot and a pullback, I will look for a reversal and an entry short.

RED NEWS Today

3:00pm

USD

Existing Home Sales

If you have any questions you can submit them here or email me at paul@actionstowealth.com

All the best

PBT