FX: drift to start week but Aussie breaks a barrier.

The US holiday Monday seems to have kept FX a bit quiet with just a bit of drift seen on many pairs. The US$ is a bit weaker which has helped to trigger two new small breakouts. One important point to note though is that the Aussie has punched up through a 4 1/2 year bear trend line so watch for any new hold above this level. Data today includes GBP CPI.

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ASX stocks in my sight line.

This article is a follow-up to an article I wrote in December where I noted the considerable achievement of the ASX-200 when it moved above the key 6,000 level. The index managed to close 2017 above this huge level and I am now looking for continuation up to 6,800. As the saying goes, A rising tide floats all boats so most stocks should benefit from any broader positive sentiment but there are a few sectors that seem to be standing out in both US and Aussie markets. I noted US stocks I’m trading in a weekend post and this article is about Aussie stocks that have my interest.

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FX: shifting sands?

Last week: Euro strength has continued and I have been noting and warning as much since November and, then again, in December when the FX Indices slipped into alignment for ‘risk on’. This knowledge has helped when assessing the many LONG EUR$ Forex breakout trades that have triggered over recent weeks. The Flag patterns on the FX Indices look to be evolving and, if they continue, this would create a considerable shift in direction-sentiment across many FX pairs; it is looking like sink or swim time for the US$! I suggest traders try and keep an open mind!

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US: Sectors and Stocks in focus.

This is an update to an earlier post about Sectors and Stocks that have my interest at the moment. There seems to be a rotation back into some sectors that have been out of favour over recent years. I look for stocks within these sectors that develop basing-style consolidation patterns and I then stalk them as they move to potential breakout. I sell Puts in the lead up to any breakout and, if assigned, I then sell OTM Calls or sometimes I then just hold the stock. Here are the stocks that I’m stalking and / or trading at the moment. I have organised the charts into their various market sectors. This is by no means an exhaustive list; I’ll be keeping an eye out for other candidates within these sectors.

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US$: Bear Flag started?

Wednesday, Thursday and Friday were bearish days for the US$ but Friday was the worst, despite decent Core Retail Sales data. Euros strength, amid talk of the ECB tapering their bond buying, has resulted in a Yin and Yang style reaction for the FX Indices. The US$ index closed with a bearish weekly candle and, more significantly, has closed below a recent low setting up for a potential Bear Flag move.

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