A THIN DATA WEEK IN THE US will give way to Fed Chairman Bernankes Budget testimony to Congress on Wednesday, while US audiences will watch Bernankes interview with ABCs Sam Donaldson on Monday evening. EURCHF session low was 20 pips below our 1.3870 target in Fridays IMT. EURUSD is hit a fresh 4-year low of 1.1878 before regaining a full cent, but any prolonged gains are seen capped at $1.2050. We said numerous times on this website and twitter.com/alaidi that our medium target stands at $1.17, but on Friday, we revised it to $1.1660 with an 80% certainty by first week of July. EURCHF is capped at $1.3980-85, while EURGBP faces 2-week trendline resistance at 0.8295.
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The U.S. Dollar Index remains the driving force behind every market move. When the dollar rallies the markets deflate, the opposite is true when the dollar declines the major stock indexes inflate and trade higher. This is what occurs in deflationary environments. Last week we mentioned that the dollar looked strong on the weekly chart. We can see the evidence of that strength this past week as the U.S. Dollar advances toward the weekly $90.00 resistance level. As of this time the trend is very strong in the dollar. The only negative that can be seen for the dollar is that it is getting extended and a little overbought in the short term, however, in strong trends it can remain that way for extended periods of time.
Traders and investors that want to trade the U.S. Dollar index to the long side can use the PowerShares DB US Dollar Index Bullish (NYSE:UUP). For the traders and investors that would like to trade the dollar to the downside or short the currency can use the PowerShares DB US Dollar Index Bearish (NYSE:UDN).
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By InTheMoneyStocks.com on June 6th, 2010 5:30pm Eastern Time
Last week we mentioned to expect further volatility and that was certainly the case. When the week came to a close the S&P 500 Index lost 24.53 points closing at 1064.88. This was a new weekly closing low for the S&P 500 Index in 2010 as the February 2010 weekly closing low was 1066.19. While this is still a support area on the weekly chart the current market trend is down and all rallies have been sold. Many traders and investors will often buy the first tag of an important support area, however, when these levels retest so quickly the odds of the level holding up diminish. The next important weekly support level for the S&P 500 Index will be the 1050.00 and 1000.00 areas. This coming trading week should again remain very volatile as the market uncertainty should continue. As subscribers have know since late last year we said 2010 is a traders year and will not be productive for the buy and hold investor. While the ninth year of a decade is historically bullish, the same cannot be said for years ending in zero. Note the SPDR S&P 500 ETF (NYSE:SPY) for an alternative means of trading the S&P moves.
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By InTheMoneyStocks on June 4th, 2010 3:17pm Eastern Time
Today is a perfect example of the games being played by central banks and government interference. This market has been extremely volatile since the mid-April top. Many investors are completely lost in this environment after listening to the news and the media to make their investment decisions. However, for traders this has been one of the best environments that we have seen for quite sometime now. When things are rosy investors will listen to the story and economic reports that their stock broker and the media have been telling them. When things get down right nasty and begins to fall apart, it is technical trader that can navigate his way through the markets. Learn the technical trading method by InTheMoneyStocks. Join our Research Center or Intra Day Stock Chat NOW and enter the ranks of the Pros!
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