✽ Market Analysis ✽

Unfortunately have been busy and away from charts again.
Mixed signals have returned – not surprising considering what’s
ahead this week. Previous USD strength last week has weakened
and I’ll be doing long Euro trades for now. Due to the market
uncertainty and dislocation – my postions are short term since
directional bias fluctuates. Trend direction will become more stable
when USD is permitted to rally and equities to fall.

GBPEUR long @ 1.1472 [closed 1.1506]

GBPEUR long @ 1.1472

The QE2 influence is back and EURUSD buying support detected.

AUDJPY long @ 78.81 [closed 78.91]
EURUSD short @ 1.3906 [closed 1.3903]
GBPAUD long @ 1.6238 [closed 1.6366]

USD bullish warnings continue and opposite for EURUSD.
DOW/SP500 etc. daily charts remain extremely overextended
and warn of a big move soon.

GBPAUD long @ 1.6238
GBPEUR long @ 1.1466 [closed 1.1474]
EURUSD long @ 1.3846 [closed 1.3893]
GBPAUD long @ 1.6204 [closed 1.6235]
USDNOK long @ 5.8889 [closed 5.8924]
GBPAUD long @ 1.6169 [closed 1.6177]
AUDUSD long @ 0.9760 [closed 0.9747]

GBPAUD long @ 1.6269 [closed 1.6247]

USD bullish warnings have strengthened and opposite for EURUSD.
USDX looks to be forming a base – more later.

USDNOK long @ 5.8083 [closed 5.8773]
USDCHF long @ 0.9825 [closed 0.9854]

DOW weekly chart shows the rising wedge contained within the
megaphone pattern. This remains a very bearish picture and we
should get a breakout soon.

USDCHF long @ 0.9825

USDCHF daily chart is bullish.

Sorry been busy doing other things. In essence DOW/SP500 etc.
daily chart is now _extremely_ overextended and warns of a
substantial retracement as it’s so overbought. USD gives further
bullish warnings and opposite for EURUSD so I still expect USD rally.
DOW futures last price 11,066

USDNOK long @ 5.8083

GBPEUR daily chart is bullish.

USDNOK long @ 5.7934 [closed 5.7949]
EURUSD long @ 1.3973 [closed 1.3961]
GBPEUR long @ 1.1288 [closed1.1374]
AUDUSD long @ 0.9903 [closed 0.9919]
EURUSD short @ 1.4025 [closed 1.3948]

TRADES:
USDCHF long @ 0.9699

XAUUSD daily chart remains bearish and it still signals a top.
USD strength as warned about for some time continues and
the opposite for EURUSD.

TRADES:
USDCAD long @ 1.0246 [closed 1.0276]
USDDKK long @ 5.3376 [closed 5.3566]
USDPLN long @ 2.8275 [closed 2.8553]
EURUSD long @ 1.4008 [closed 1.3995]
USDCAD long @ 1.0201 [closed 1.0196]

CURRENT TRADES:
USDHUF long 196.03 (closed 201.72)
EURUSD short 1.3903 (closed 1.3756)
GBPAUD long 1.6169 (closed 1.6154)

Today marks an important turning point for global markets and the
USD strength I warned about has arrived.
***
After weeks of overbought warnings, the XAUUSD daily chart has
gone bearish, suggesting an important top has occurred from it’s
parabolic run. More later when I get time.
***
After weeks of extreme overbought warnings, it seems the very
overextended DOW/SP500/EURUSD has begun it’s overdue
retracement. The only unknown variable is the ongoing risk of a
major news announcement altering the chart action like what
occurred in 2008.
***

DOW daily chart Tues Oct 19 mid session gives bearish warnings.
***
EURUSD 240 min chart confirms short signal and DOW/SP500
240 min chart gives further bearish warning.
***
EURUSD 240 min bearish signals strengthen and opposite for USD.
When I get confirmation i’ll be adding to my USD bullish postions.

OPEN TRADES:
USDHUF long 196.03
EURUSD short 1.3903