Wednesday 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.

Some of you asked me about the carry trade correlations yesterday and here’s the GDP/JPY which I mostly follow over the past few months (since economic data suggested a strengthening of the GB economy). Anyway, it’s been treating us well but has been starkly pointing down since yesterday – quite a divergence there and it’s currently continuing down after a brief push higher. So this is a bit concerning.

As you can see the SPX cash managed to hold the 25-hour yesterday but given what I’m seeing on the spoos right now this may change in today’s session.

Here’s where we were about 20 minutes ago and unless this is just an attempt to scare the children we’re probably going to revisit 1934. Make sure you bring a top hat Evil Speculator style. Once again watching the Zero for clues of continuation lower this morning should be good medicine – look for signal divergence or confirmation.

AUD/JPY is going on my watch list – it’s knocking on its 100-hour SMA and we don’t have enough evidence yet to risk a long position. Let’s see if it can do a bit of testing here – perhaps even a little scare via a push below followed by a recovery. I want to trade a continuation here if it gives me the right signals.

More below for my intrepid subs:

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Cheers,