Stocks..
Nikkei & Dax are both hovering over the qtrly upside pivots.
Rio…by maintaining over 48.90 this should test 51
Rio…by maintaining over 48.90 this should test 51
Bonds
FX…
USD/JPY…needs a close over 98.85 to start another leg down.
AUD/USD…we think this is a win win trade. Congress doesn’t act and China will likely diversify more dollars into other currencies , putting a bid to the breaks. A good resolution to the D.C. drama would create commodity demand putting a bid to the currency.
Commodities…
Oil…rallies continue to fail. Look for bounces all the way down.
@ 100, 99 & 98.50 which is the 200 day, a likely short term low for a while.
General Comments or Valuable Insight
What does the U.S. Congress have in common with Deer Hunters in Wisconsin?
They both hide in their blinds, while getting drunk, looking at Porn in between taking pot shots at the guy in the next field.
Then you get the “But it wasn’t me!” who fired the gun….Right!
I have absolutely no intention of getting involved in the indices until I see a clear path late in the week.
Those of you who are day trading stocks can always find a gem with trade location.
Short Term View…
We’re in a game of picking the next low for an attempt back to the highs in the U.S. Equity Indices. Right now individual stocks look to be an easier read based off their own technical s.
Go with the flow. Use the 9/30 closes as your macro pivots. Trade the opening ranges and early time frames.
Today’s Working Orders…
Sell 1/2 AUD/USD @ 95.14.
Sell 1/2 FXA @ 95.10.
Current Positions….
Long AUD/USD 94.32 93.70 Close 95.25/96.75
Long FXA
94.31 93.80 Close 95.15/96.70