Good day to all,
isn’t it wonderful that we are just days away from the New Year? Time flies pretty fast these days don’t you agree?
I said in my previous review that bullish forces might test 1.4400 followed by 1.4445+ and indeed the “divine” forces of the market did so. It now eases off to 1.4420+.
The S&P 500 is climbing as well and this is probably caused by the commodities bullish run. Investors are said to be speculating in a faster economic growth in 2010 and hence commodities will probably be in high demand. Even sugar has reached a 20 year high!
Oil is slightly bullish and is currently $77+.
Gold is currently around $1104+. With the low holiday volume and the apparent lack of adverse or positive economic developments, gold simply moved along in it’s small range trading.
While folks all over the world are partying, the price action will most probably be dominated by news reaction and technical levels. Therefore the economic calender i have for you below is your friend! Today’s US CB Consumer Confidence turned out to be almost as per expected and hence not much of a movement was mustered. Tomorrow brings us the Chicago PMI and investors will be watching for a better than expected release as the previous two months brought us so.
Low volume trading seldom brings us a sustained trend. Either we see flat price actions or strange wild ranging actions like now. Therefore we must be extra careful and only take positions when necessary and confident.
Just like a SWAT team!
Plan well, wait for the right opportunity, execute a good entry and leave with the pips harvested before anyone even notices it!
To start things off, read my article on planning your trades.
Bullish momentum may bring us to 1.4445+ again followed by 1.4480+.
Should the current bearish run develops, we may see 1.4400 tested followed by 1.4362+.
Remember i said previously that i can’t see well on my monitor screen? I frequently use eye drops to combat this. The caution ” To be discarded after one month of usage ” falls upon deaf ears and the latest one i had was two months old. Curiosity got the better of me and i decided to surf the net to find out why.
To my horror, and i almost fell off my tree, the reason was because the drops are meant to be sterile. Once opened, the preservatives can keep it so for at most one month and after which, harmful bacteria may contaminate the solution. Stubborn attempts to continue use may result in serious damage to the eyes.
Imagine .. what if my eyes are so damaged that i see a bearish red candle as a bullish green one? Even proper money management won’t save me from that!!!
Trade safe !! ( i am off to wash my eyes )