Tuesday, November 2, 2010

US Midterm election day.

The market has historically done well on election day (the Tuesday after the first Monday of November) and during election week. Since 1900, the Dow has averaged a gain of 0.28% on election day versus the average change of 0.03% for all trading days since 1900.
With the big FOMC meeting tomorrow I am not expecting any breakouts of these ranges or any that will have any follow through.

Australia unexpectedly raised interest rates tonight after a 5month pause, citing rising inflation concerns medium term, the reduced risk of lower growth in China and the minutes also say  “the economy faces large expansionary shock from terms of trade.”
I don't expect to be doing much trading today ahead of tomorrows decision but will be doing some chart study and post setups here.

EURUSD stopped out balance 1.3970 (+0.5R)
New trade (US session):
GBPAUD long 1.60 stop 1.5950 PT 1.62 / 1.66
CRUDE short 83.80 stop 84.20 PT 82.50 / 80.00
AUDCAD re-shorted 1.009 stop 1.12 PT 0.98 / 0.955
CRUDE short stopped out (-1R)

Open trades:
USDCHF long 0.9710 stop 0.9680 PT 1.00 - 1/2 position
EURGBP short 8860 stop 8890 PT 0.85 - 1/2 position
EURSGD short 1.8040 stop 1.8190 PT 1.7650 / 1.70
AUDCAD re-shorted 1.009 stop 1.12 PT 0.98 / 0.955
GBPAUD long 1.60 stop 1.5950 PT 1.62 / 1.66


  1. Gold may be a good short too. Short term of course.

  2. In case you missed it.

  3. I saw that, thanks. Look at the flow into EUR today even though spreads on the PIG debt are exploding. Central banks and China are hiding there until FOMC.

  4. TF
    Seldom look at TF and even less so daily charts but noticed this possible "Wolfe Wave." Is this how they're drawn?