The Next Hurdle

This month’s FOMC water torture is finally behind us and as expected it stirred up a bit of movement in equities and of course on the FX side. I’m feeling a bit under the weather today so forgive me if I’ll make this a quick and snappy one.

After a clever shake off attempt late yesterday the E-Mini’s aggressive advance continued unabated. We are now approaching the next significant hurdle which is a pronounced volume hole near 1440 and change. As usual we can expect some tough love there for the Johnny Come Lately Candle Chasers.

Thanks to Bernanke’s continued QE adventures most of our EUR based FX setups are now in great shape. I am not going to list them all but if you grabbed a few of yesterday’s symbols then your account should be nicely in the green right now.

Yesterday’s early entry on the EUR/USD will at least dampen some of the pain I can expect at the ATM. (I moved to Spain earlier this year.) The target range above isn’t exactly baked in but if we see a push above 1.31 (I should have painted a diagonal resistance line) things could accelerate nicely.

Bonds fell below the 100-day SMA yesterday which was our signal to grab some short exposure. So far it’s looking good and my target range is near 145’20.

Cocoa is painting an interesting setup as it just crept over its 100-hour SMA. Fortuitously it also sliced through a daily NLBL and and with some luck may jump over both daily SMAs. I’m long here with a generous stop below the 100-hour SMA.

Again, my apologies for the quick post – I hope to be my old nefarious self again tomorrow.

Cheers,