MARKET UPDATE 1
TRADE ALERTS UPDATE:
http://screencast.com/t/Wwf85zsNLTTAQ&A
QUESTION/COMMENT
From: LJ
To: jerry Stewart
Sent: Wed, March 30, 2011 9:28:06 AM
Subject: Spooked by Euro the last 2 days
To: jerry Stewart
Sent: Wed, March 30, 2011 9:28:06 AM
Subject: Spooked by Euro the last 2 days
Hi Jerry.
Lots of signals, no movement.
Cheers.
LJ
ANSWER:
Hi LJ
The Eurusd is sitting at weekly minor support after a high volume down bar last week. This indicates that the eurusd wants to go down. but is being supported by weekly footstep. so there is a fight raging right now that needs to be resolved before eurusd can make a move . The 4hr eurusd is contained within an inside bar, the long red bar 7 bars ago which is mother bar. mother is also a range bar and a down range bar usually gets tested at the high.
The euraud is a good bet to go down because of the bear reversal bar that formed last week. But is also contained within an inside bar.
As far as volume the most recent 4 hr indication is no supply on the down moves which means demand should be entering the market to take price up in the short term.
But I am also a little skittish with this market right now. Especially after the dollar negative news this morning did nothing to move the markets. And that was a major report. Also, Wednesday is interest rate differential day and usually moves markets nicely but not euro this time.
A lot of it has to do with the market having to recalibrate after the shock in the Yen. Yen trading has come back to life and the market is struggling to recalibrate because as we know the markets are based on correlations with each other. So, there is confusion in the markets right now. The things that traders normally rely on to make their decisions is skewed right now and volume is very low as a result. No volume no sustained moves. In other words, the operators are in full control right now and are having their way. They have to make the markets appear if they are moving if they are to draw in new money and because of what I said above they are hard pressed to draw in new money right now because many traders are feeling like you and I.
I'm seeing that most moves are against the flow of volume which cannot last. Really the only currency that has real life is the yen. That's due to the pent up energy from that currency being a dead cat for about a week and now the lid is off.
Patience is the key for sure. The true large players are waiting for Friday's u.s. employment data which should be the real market mover for the week. Often the week this report comes out markets range between support and resistance without committing to a true direction.
CHEERS AND ONE LOVE,
The Eurusd is sitting at weekly minor support after a high volume down bar last week. This indicates that the eurusd wants to go down. but is being supported by weekly footstep. so there is a fight raging right now that needs to be resolved before eurusd can make a move . The 4hr eurusd is contained within an inside bar, the long red bar 7 bars ago which is mother bar. mother is also a range bar and a down range bar usually gets tested at the high.
The euraud is a good bet to go down because of the bear reversal bar that formed last week. But is also contained within an inside bar.
As far as volume the most recent 4 hr indication is no supply on the down moves which means demand should be entering the market to take price up in the short term.
But I am also a little skittish with this market right now. Especially after the dollar negative news this morning did nothing to move the markets. And that was a major report. Also, Wednesday is interest rate differential day and usually moves markets nicely but not euro this time.
A lot of it has to do with the market having to recalibrate after the shock in the Yen. Yen trading has come back to life and the market is struggling to recalibrate because as we know the markets are based on correlations with each other. So, there is confusion in the markets right now. The things that traders normally rely on to make their decisions is skewed right now and volume is very low as a result. No volume no sustained moves. In other words, the operators are in full control right now and are having their way. They have to make the markets appear if they are moving if they are to draw in new money and because of what I said above they are hard pressed to draw in new money right now because many traders are feeling like you and I.
I'm seeing that most moves are against the flow of volume which cannot last. Really the only currency that has real life is the yen. That's due to the pent up energy from that currency being a dead cat for about a week and now the lid is off.
Patience is the key for sure. The true large players are waiting for Friday's u.s. employment data which should be the real market mover for the week. Often the week this report comes out markets range between support and resistance without committing to a true direction.
CHEERS AND ONE LOVE,
JERRY
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