The Big Week

Found an excellent summary of this week's events on Zero Hedge this morning:

One of the main highlights is the German Constitutional Court's ruling on the ESM and fiscal compact on Wednesday.

On the same day we will also see the Dutch go to the polls for the Lower House elections.

Thursday then sees a big FOMC meeting where the probabilities of QE3 will have increased after the weak payrolls last Friday.

The G20 Finance Ministers and Central Bank Governors will meet on Thursday in Mexico before the ECOFIN/Eurogroup meeting in Cyprus rounds out the week on Friday.

These are also several other meetings/events taking place outside of these main ones. In Greece, PM Samaras is set to meet with representatives of the troika today, before flying to Frankfurt for a meeting with Draghi on Tuesday. The EC will also present proposals on a single banking supervision mechanism for the Euro area on Tuesday.

If these weren't enough to look forward to, Apple is expected to release details of its new iPhone on Wednesday.

I don't comment on Apple much, but I have a 1:1 Fibonacci target of 703.65.  I'll be curious to see how it plays out.

If you trade AAPL a lot, a good person to check out is @Fitzstock2004 on Twitter.  He's a good example of how specializing in one stock and adding options to the mix can supercharge one's trading.  He set a goal to make $1 million trading just AAPL this year, and he's well on his way.

Last week confirmed my feeling that the market still wanted higher.  The breakout on the S&P was a thing of beauty -- a textbook impulse wave higher.  I think we may have made the highs or will do so after another small subdivision (down, up), or it could decide to trace out an ending diagonal or rising wedge of some sort.  I'm content to let it tell me what's what.  It should not be hard to figure out once it occurs.

The May highs of 2008 were 1440.24 and may be a target.  A/Ds faded badly on Friday, and for all the new highs talked about (298), realize that this figure has also been fading since April 2010,  when 671 new highs were reached.  This is a massive divergence and should be respected.

Lastly, with all the attention focused on Apple, Germany, and the FOMC, let us not overlook the Dutch elections.  A trader friend just sent me this:

"Keep an eye on Geert Wilders, whose Freedom Party advocates an exit from the euro. Wilders has been gaining steam, as his message resonates with a segment of the Dutch population that fears it will be on the hook for a series of endless bailouts. If Wilders' party puts in a strong showing, new doubts could emerge as to the future viability of the single currency."

For my part,  I've never wavered in my doubts about its future viability.  I even doubt its current viability.