Peso – Breakout…..(and morning commentary!)

I have a trader in my  office who occasionally trades the Peso, so we havebeen watching this chart formation for the last month.   You know the old  saying,  a watched pot  will not  boil….you can lead  a horse to water but can’t force them to drink…same thing goes for watching a triangle.  But –  today  might have been the magic breakout  day!   Click on the chart of the Peso below to blow it up.

The AD had a bull trap at the upper end of its range (false breakout) and tonight came out the lower end of the range,  (following the CD).  Will the Yen follow as  well…20 day low is the level to watch.  In the meantime,  will this Peso get legs to the downside too?  Only the EC and BP remain contained in an equilibrium  point.  The Dollar index itself appears relatively trendless.   Eventually it will take out the last  swing high or swing low on the daily charts… for now,  one can draw convering trendlines.

Equities – they can continue this rally for awhile.  MSFT has a  textbook daily power BUY.  Weekly osc poised to turn up.   IBM –  still on  grail  buy. Even AAPL  has daily  power  buy.  PG  oversold,  daily  buy  divergences.XOM  consolidating  up here…etc.etc.  There are so many good looking  charts just  STARTING  to turn up.  The summation tick has rallied from oversold to neutral.  It is not  overbought. Looking for the SPs to hold their  gains.   Thursday is a Sell Short Day  after two days high to low, but since the 2-period ROC made new  momentum highs, downside may be limited.  The first morning dip should find support.   1832 t0 1833 has been a big level for the SPs.

Cotton – very nice daily chart formation with good upside potential. 

GC and SI  at  critical points –  2 -period ROC has a Buy Day,  but Daily Osc is neutral.  Bonds and Bunds – 120 minute charts try retest back up.  Crude sell short  for scalp on  rally   above Wednesday’s high.  Should form trading  range.  

Cows – RS leadership continues to the upside…..trend mode continues.

Happy trading!




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