Market update Monday Jul 25 2011 9:30 am est

Trading right now is extremely risky with the U.S. debt ceiling news hanging over the markets. We all know that they will come to some type of resolution but, it seems like they will milk it out to the last minute.  Whatever positions we take, if any we want to take a lighter position than we normally would.

I can just see myself taking a boatload position on the perfect Lcm signal and then, BOOM, they come out with the announcement and all hell breaks loose.  Of course the big boys will know before the announcement comes out to the retail traders. Once the big-s know that they have a deal they will suck as many retailers into wrong way positions as possible before the news breaks at the most inopportune time for us.

I am expecting the u.s. pairs to reverse hard once the news comes out. It is soooo dangerous right now because markets are moving only on pure emotion.  The moves look oh so good and we feel like we are missing out.  It's just that any analysis, no matter how perfect, means absolutely knowing when that news breaks.  Thdy have until Aug 2 to play games.

The most dangerous markets right now are the one's that have already made big moves without any pullback tests.

I'll come back a little late with my technical outlook on some of the pairs

Cheers, Jerry