The FTSE Futures shows how these previous support turned resistance are holding across the board.
In FX the market feels heavy. The EU's bazooka or "debt baguette" seems like an invitation to me to all the EU banks to try and dump their toxic Sovereign paper and ZH reports European Banks now feverishly betting against Euro. My new target for EURUSD is 113. BUT this is a very one-sided trade and short sharp squeezes are likely.
talk of ratings agency downgrades with the uncertainty. Not even good manufacturing data could lift it this morning. Cable has bounced at a retest of the trendline and is a pretty safe bet to retest the lows now. My only worry is now MS likes it short too!
If stocks do indeed break lower today I will be looking to short AUDUSD which has struggled to get back above the 9000 level.
if it successfully holds above the previous trendline resistance and at least we know where to put the stop.
I have never seen such a big drop in crude without a bounce. We now hover just above the 75.00 level and I would not be surprised to see this broken and then a retrace higher. I think some longs may be getting pretty squeezed down here. When we bounce we could go all the way back to 82 and I still keep my bearish view and sell rallies but for now 78 is pretty strong resistance.
GOLD is a one way ticket north. I missed it and I have been reluctant to chase it at these prices but while the mood continues today may be the day we see new highs in Gold. The broadening wedge in Silver continues and I am watching for a test of the top and the 19.00 level.
Time to wait for the US to open and see how risk appetites does today but the bullish chatter in my twitter stream has quietened down a lot .... actually that might be a buy signal ;)
A quiet day here
GBPJPY short addition closed 25% @6R 137.80 (+1.5R)
USDJPY short addition closed 50% @3R 92.55 (+1.5R)
GBPJPY short addition 25% balance stopped out 139.40 (+0.5R)
USDJPY short addition 50% balance stopped out 93.05 (+0.5R)
CRUDE third addition 50% balance stopped out 77.20 (+0.5R)
CRUDE short 77.00 stop 77.40 PT 75.00 - try again
CRUDE short 86.75 stop 87.15 + 79.70 stop 80.20 - both 1/4
EURUSD short 1.3110 stop 1.3135 PT 1.30 - 1/4
USDJPY short 93.75 stop 94 - 1/4
GBPJPY short 140.90 stop 141.40 - 1/4
CRUDE short 77.00 stop 77.40 PT 75.00