There are In-N-Out burgers, and there is the USDCHF, which I got into yesterday morning and out of this morning. I had some huge profits evaporate about as fast as I can scarf down a double-double cheeseburger.
Well, it took a little longer, but the point is I don't think USDCHF is quite ready yet. As I said the other day on Twitter, "this may take a few tries." It looks to me like it's tracing out some sort of ending wedge. The turn should be dramatic, and I intend to be there.
It has broken a monthly trend line to the downside. I'm sure the larger forex players have taken note and will try to press it. But I remain steadfast in my conviction that as Europe's troubles intensify and spread to Eastern Europe, the Swiss franc will be sold as its exposure is questioned.
Yesterday's S&P move qualifies as a gap-and-crap in my book: it gapped open, rolled over, and crapped out. Doing so, it has traced out a huge doji on the daily chart, 30+ points worth of market indecision.
There is still an open Fibonacci projection down to 1249 on the cash index which would nullify the a-b-c-d-e triangle I mentioned over a week ago. I will trade this range with SPY calls and short e-minis. Yesterday's 1307 high is a good upside target.
Nice post, I agree its going to chop as many out as possible before we turn.
ReplyDeleteHi Nicola, thanks so much for the kind words and glad you agree. I must add how much I've enjoyed your charts. Great stuff!
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