Easy As She Goes

Seems like the seasonal winds continue to favor the bulls as we keep testing the coveted 1300 mark despite lackluster NYSE sessions. On a short term basis we now have a decent chance of pulling back before a push higher. The daily is not showing us that much but the weekly is a lot more forthcoming:

That upper 25-week BB line should be good for a red candle before probably proceed toward SPX 1400 – T2 on my monthly panel. My volume profile chart is not showing me much mojo above 1310 or so – not impossible they gap into that but I think it’ll take a bit more time. In any case – watching the AUD/JPY and the spoos remain key for avoiding any NYSE open surprises.

You may recall that late January usually favors the bulls for a week or two. The only problem with timing here is that everything appears to be seasonally late this time around. We got our ‘Santa Rally’ in late December into mid January and thus it seems to me we’re running a tad behind common seasonality. Not that trading would be that easy to begin with – granted 😉

Alright – once more a few FX goodies for my intrepid subs below – I keep telling you that the real fun is happening outside of equities right now:

EUR/JPY – that was a nice long squeeze but it’s possible that the down trend has reached its finale. This is the first time in a long while that we are testing a NLBL. Will this one succeed right away? We really can’t say but the fact that this breach finally put the EUR/JPY back on our map as a possible reversal play.

USD/CAD has been a bit down as of late and is thinking of committing seppuku assisted by Austin Powers. Heck – we may even drop below par here – great – I really should consider charging for my subscription in a different currency. And let’s forget about going to Europe this year – I may have to settle for Bakersfield.

Seriously though – let’s watch that cluster of NLSLs on the hourly panel. If those or yesterday’s lows give then we may see some long candles to the downside. Of course until that happens this is a great setup to get positioned for a push higher – very little risk.

NZD/USD was a trooper and breached through its NLBL – we may see a retest here and if we get it I suggest you use it. Otherwise I see you at 0.8150.

Last and least (j/k) here’s the USD/JPY which is not a good setup right now BUT I wanted to draw your attention to that juicy Net-Lines box that it’s caught in right now. Which means we can play the swings or the breaches – that’s the way we like it.

Not much noise on the commodities side – I got my eyes on a few setups over there and will post them as soon as they ripen to becoming news worthy.