US Dollar, Gold, Silver, GDX & Marijuana Stocks

In addition to investment grade bonds (treasuries, munis & BBB+ rated corporate bonds) which were covered in yesterday's post, a few other potential bottoming plays that stand out at this time are gold, silver & the related mining stocks, cannabis stocks and some the major currencies (vs. the US Dollar) such as the Euro, Yen, Pound Sterling. Essentially, other than the cannabis stocks, which have virtually zero correlation to the stock market or any currencies, including the US dollar, all of the above (gold, silver, GDX, major currencies & even the investment grade bonds) have a fairly strong correlation to the [...]

GBP/USD Outlook

The GBP/USD (British Pound/US Dollar) pair appears to be forming a basing pattern (blue box) in which an upside break appears the most likely resolution. A solid break above the 1.35 level would likely trigger a move back up to the 1.40 level. The ETF, FXB, is an alternative option for long exposure to the Pound Sterling. 4-hour period chart: GBP-USD 4-hour July 14th

Jul 14, 2016 10:34am|Categories: Forex (Currencies)|Tags: , |4 Comments

Market Overview 6-24-16

The video starts with a brief overview of the Pound Sterling/US Dollar (GBP/USD) currency pair followed by an overview of the US equity markets & wraps up with some comments on trading strategies, including some considerations on when to book profits vs. letting a profitable position run. note: It might take a few minutes after this video is published before the processing stage at YouTube has been finalized to allow playback in HD (720p). If the video isn't clear at first, try increasing the playback quality settings (lower right-hand corner of the video) after a few minutes.

SPY & QQQ Key Support Levels & Targets

The markets gapped down to some pretty significant support levels today (and/or hit those levels in pre-market trading before reversing): the 203ish area on SPY & the 104.50ish level on QQQ. While this first tags of those key levels in a while is likely to produce a reaction, which so far it has, with the longer-term bearish case that has been made here in recent weeks, it would appear to me that the reactions off these levels will be fleeting & it is only a matter of time, most likely next week at the latest, before those levels give way. [...]

GBP Near-term Scenario

It's getting late here in the east coast of the US so I'm going to share one last chart on the GBP/USD with what I believe will be the two most likely scenarios, both of which bring the pair back up to the 1.40ish level in the coming days. I rarely ever trade currencies & although I didn't place any leverage bets, I did just transfer a good portion of the cash balances in my trading account from $USD to GBP. GBP-USD 1 minute June 24th Again, these currency setups are not official trade ideas, just passing along my [...]

Pound Sterling at Support, Bounce Likely

As the Brexit vote polls are still open & push to about 50/50, the GBP/USD has fallen to long-term support with bullish divergence in place. Currency traders that don't mind stepping in when there is blood in streets might consider a long position around the 1.36 level with the appropriate stops using a 3:1 or better for a bounce target of 1.45. Unofficial trade idea. Weekly chart: GBP/USD weekly June 23th