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.