Friday, October 8, 2010


So we have some pretty good reversal candles at key levels in the dollar crosses and stock indexes.   But today is NFP and the talking heads are forecasting a positive number for the first time in a very long time.
The market anticipation of QE2 means we could be in for some Costanza trading though, as much of the additional QE has been priced in the last couple of weeks.  A better than expected jobs number *could* send stocks lower on the basis that more QE could be delayed and a bad print *could* send them higher.
Big reversal candles often produce an inside bar or harami the following day but it will still look good next week.
I won't post all the charts today, will do that on the weekend.

Doji at the big 1.40 level and fib timing from the low supports a change of direction here.
Support zones at 1.35, 1.3330 and 1.3130.


  1. hi Nic,

    Good to see you posting again. Have missed your perspective on the markets.
    Hope all is well.

  2. Yay!! Great to see you back to health Nic - Ben and I were getting worried! I do hope that you have recovered. Bloody Tics eh? Who'd have thought something that small could be such a pain??