One thing you learn quickly on the Autobahn is that you can't lose your concentration for a second. Just when you're thinking you're so cool because you're doing 210 KPH for the first time and it's totally legal man! along come some flashing headlights in your rearview as a big Merc blows by you as if you're standing still.
So it was a tiny little headline on Marketwatch this morning that caught my eye, way down the home page which was reserved for the gimmick known as Sodastream and their abysmal profit projections.
This was on the heels of a 5.7% decline in manufacturing orders . . . in Germany. Not Greece. Not Portugal, or any of the PIIGS. Germany. The largest economy in Europe.
Global markets should be keeping an eye on the weather. The ill wind from Europe may be turning into a sirocco.
Now I am glad I took off some of the euro trade yesterday afternoon after it was up 147 pips. I still have more than half on, and I like the way the structure looks. But it's always good to bank some in case your analysis is wrong.
Meanwhile, ES futures probed the equivalent zone that I have my eye on in the cash market. With Europe down hard today, there is an excellent chance that the 1940-1948 area gets tested (shown in yesterday's scenario #2). This area is a 61.8% Fib retracement, a volume shelf, and a gap (1946.17).
I still think the market heads higher. Will be looking for calls today, gaming for the 1985-2000 area.
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