Friday Morning Briefing

Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.

By the time I’m typing this the spoos have already touched the 25-hour SMA. A breach lower here may lead us back to the 100-hour. The fact that the 25-hour is flattening may suggest the juice is running out up here. So I’m pretty curious how things will unfold as we are about half an hour away from the NYSE opening bell. I will grab a few ST short positions if buyers don’t show up here.

Signs of life in the greenback. When I got up this morning I was horrified to see the EUR/USD above the 1.3 mark again (as you can imagine I’m feeling that at the ATM). It’s since weakened a bit and inversely the DX is now pushing above the 100-hour SMA. I’m going to hold the confetti for now however as this could turn into yet another failed break out similar to what we saw last Wednesday. I think a solid breach here is important or a EUR/USD of 1.3 may be in Santa’s Christmas bag.
[amprotect=nonmember] More charts and non-biased commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
[/amprotect] [amprotect=1,13,9,12,5]

Here’s that bad boy that’s ruining our Christmas shopping experience (not really but it’s a great excuse when shopping with Mrs. Evil – hehe). Next support line is of course the 100-hour SMA. Since I took this snapshot it’s pushed back up and it’s unclear right now whether or not we’ll test it. Keep an eye on that however over the next few hours. If we push higher than the 25-hour SMA will be the next cluster of resistance.

USD/CHF right at the 100-hour SMA. I’m short with a stop above.

Silver has been running like a hare lately. Someone with deep pockets is having fun with that contract. Which is why I’m only trading in very small position sizes here – no reason to play hero here folks! Anyway I was about to try a long here but in the past few minutes it’s been running back up again, a bit late to chase it, sorry!

Pickings are slim right now and it’s very tempting to try to chase what looked like a great setup only a few minutes ago. I strongly suggest you remain disciplined and wait for another opportunity. We are still in a honeypot period and that means market makers are not taking prisoners – be careful out there!

Cheers,