UST Bonds selloff boosted the USD. Retracement time now favors Long EURUSD & GOLD and Short USDJPY

Bond markets are the major market mover behind the USD strength in the past 2 weeks after the first article hinting FED’s planning a QE exit. US 10-Y Note is breaking down on Weekly charts with a first measured target around 127. While most look at the Global Stock markets the major FX moves are affected by the Bond markets because of the huge volume traded. As the FED is globally setting the price of money we should keep an eye on the developments there.

 The US 10-Y Note Yield is breaking above the last High and it’s signalling a rise in the implied US Interest Rates as a direct result of the assumed FED QE exit. This logically concides with the topping out of the Global Markets in the last week. Rising Interest Rates in the US are USD positive as the Interest Differential to the EU and other CBs is shrinking as the ECB & RBA are actually lowering the rates.

USDX – The Dollar Index is retreating from the recent High and is sitting comfortably at the Support around 83. I would assume it will be consolidating for the next week until it goes down to the Flat Support around 82.50 where it will meet the Lower Channel Support. That weakness is easily seen in the retracements in the currencies and Gold.

EURUSD Daily chart as mentioned before has broken above the psychological level of 1.3 and run into the real Resistance around 1.3040/50. The flat 200-Day MVA at 1.3115 is a powerful magnet and next week it will be touched with almost 955 probability. It coincides with the Higher Bollinger Band around 1.3130 and as a rule of thumb once the 20-Day MVA is broken with confirmation the price would travel to the other BBand. The ultimate Support is provided my the layered 8, 20 and 50-Day MVAs right below the spot price. The Momentum measured by the Stochastic Oscillator is giving confirmation to the upmove at the present moment.

GOLD Daily Chart – USD weakness translates into surge in Gold’s price. Technical breaking above the 20-Day MVA above 1410 it’s next target lays around 1460 with the 50-Day MVA. Momentum has turned positive and from a wider perspective Gold has already put a Higher Low around 1355 after the steep liquidations in April down to around 1320. The probability is favoring a surge to the upper Range of the last 2 months as noted by the 50-Day MVA and the Higher Bollinger Band around 1475.

 USDJPY Daily Chart – The Momentum has turned down and the Weekly chart is Turning as well. It coincides with the BOJ officials’ rhetoric that the current weakening of the YEN has been enough to make up for the former disbalances and they would be confortable with an assumed 95-105 range.

The multiyear Fibonacci retracement 50% level at around 99.50 is very important and will be pivotal going forward. The immediate support is lying at the Lower Bollinger Band around 98.90 and there is a good probability that we see these levels in the next 2 weeks. Given the Stock market weakness we can see more unwinding in the JPY pairs and witness USDJPY selling getting even steeper. The ultimate Support is at the Ichimoku cloud around 97.80.

EURUSD at critical Resistance below 1.30 level

EURUSD Daily chart:

Following the better than expected IFO data the EURUSD surged to an intraday High 1.2992, just shy of Wednesday’s Ben Bernanke induced whipsaw High 1.2997. While that sparked a lot of EUR buying against the USD and on the other EUR crosses the overall USD strength is still present as the GBPUSD and AUD USD  lagged that counter trend move.

Technically the EURUSD is running into a very solid layer of Resistance: the 50-Day MVA is right at 1.2980 and above it is the 20-Day MVA at 1.30 which would be a tough level to break. The move up would be only confirmed by a close above 1.3040-50 which a more important level based on the previous chart points.

While my view is biased towards a down trend continuation there is a counter argument based on the turning Momentum represented by the buy signal generated by the Stochastic Oscillator and the fact that the recent Low around 1.28 is actually higher than the previous Lows around 1.2750 made in the start of March.

Shanghai Composite is tumbling, S&P500 and GOLD are losing Momentum.

 As the whole world is now aware the Federal Reserve has announced 2 weeks ago that it will continue with its stimulative policy effectively starting what is known as QE3. This gave risk taking a boost but we saw last week the waning of the momentum in the S&P500.

   

 This is a great chart depicting the impact of the stimulative policy of the FED since the Lehman Brothers collapse. It is always hard and a bit stupid to call a top before a significant move in the market actually signals it but it is noteworthy to pay attention to the waning momentum indicated by the Slow Stochastics which already turned down. The Candlestick pattern on the Weeklies also gives a warning signal of a possible reversal.

 

 Shanghai Composite has been in the news recently as Industrial Production figures decline further. It is reported that there is a general lack of interest in the Mainland to investing in the stock market and people are rather putting money in the Real Estate as a more prudent way to manage their wealth. The SSEC Index is in steady decline ever since the global financial crisis started and this is in a stark contrast to the steady rise in the US stock markets. And this event has a rather clear explanation.

 The price of GOLD has been a proxy for the flight to safety and the fear of the inflationary policy of the Federal Reserve. It's move is a good indicator of how the investment community perceives the risk of the debasement of the US Dollar and we can easily see how in the last 3 months the QE3 phase has been largely anticipated giving GOLD a boost up to the significant ~$1780 level. Looking at momentum, however we had to exercise caution as it has begun to lose steam already and while we can't call a top without any significant chart confirmation, the risk of retracement at this stage is rather big.

 As Chinese has the saying "A picture is worth a 1000 words" here is the story of the world since the beginning of the global financial crisis. The US found its way to inflate its equity markets out of the mess while the Chinese markets failed to do so which is mainly to the difference in the monetary of the 2 economies. While it is a rather complicated concept to differentiate the 2 approaches it is obvious that the US markets have been a rather better performer.

This chart is simply a confirmation how the depreciation of the US Dollar helped boost the US Equity markets - an easy and proven approach since the birth of central banks around the middle of 18-th century.

US Dollar Index basing above 82 for a potential burst UP.

Classic Technical Analysis would spot the previous TOP at 82 now acting as a Support level as the USDX is basing around these current levels.

Slow Stochastics are turning UP from Oversold conditions and this coincides with the Over-extended run in the AUDUSD and the Stoxx (S&P 500 e.g.).

Trendline Support coincides at the current levels as well and the confluence of technical signals gives me a hint of a good probability we witness an Upward continuation of the Trend move in the USDX and possibly profit from a Long USD position. Good luck and Good trading!

Starting to build Long Crude Oil position after 30% fall.

Crude Oil fell 30% in the last 2 months and it gives me a reasonable Risk/Return perspective to start a tentative Long position around the $80 level via the CL August '12 contract.

A clear stop would be situated below 77.5.

FX Majors are flirting with their 50% retracement levels.

 FOMC tonight announced that it will continue its Operation Twist.

Details can be found in all major news-wires, Bloomberg for example:

http://www.bloomberg.com/news/2012-06-20/the-fed-is-running-out-of-room-to-twist.html

All currencies have had a good run down as the USD strengthened all throughout May 2012. Once a strong trend like this is reversed traders start to think where its correction will end as it is a natural inclination of the markets as representation of the mass human psyche to pursue a goal or follow an established trend while it lasts. And momentum and inertia are most powerful and enduring forces, so I'd like to be short ahead of the 50% retracements of the latest trends as markets tend to mean reverting so a 50% correction should be quite sufficient before markets resume its due course. Otherwise it's all a matter of Risk/Money Management.

 EUR/USD did touch close to the 50% around 1.2787 and is hovering post NY session around 1.27. Slow Stochastics are not overextended and it's way below its 200-Day SMA which naturally reflects its beaten up status among the Debt crisis mess with all the Southern European countries with rising Bond Yields.

 

 GBP/USD has bounced off its Triple Bottom around 1.5262 and quite sufficiently touched the 50% level at 1.5783 and quickly fell back below the 200-Day SMA. Key Levels are the 20011-2012 range 38.2% level at 1.5832 and the 1.5660 (38.2% level of the latest correction) on the downside once (IF) the reversal to the prevailing down-trend starts.

 AUD/USD already did 6 big Figures up and stopped right before its 50% correction around 1.0218 and the 200-Day SMA and also just below the 50% level of the whole 2011-2012 range. Slow Stochastics here are mostly over-extended and poised to flash a major Sell signal.

USD/CAD has built a major short positioning among the retail accounts and that is just one facet of the Long view here. Slow Stochastics are turning Up while the pair is still far from the 50% and the 200-Day SMA, however it's sitting right on the 38.2% of the 2011-2012 range. The signal here is somewhat weaker but those uncertain trades often turn the best winners.

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These levels are on the table now so I'm positioned to buy the USD agains the majors for a resumption of the latest trend we witnessed in May. Certainly we might hit the 61.8% or even reverse the whole trend and venture into major USD weakness but it's all possible in the markets and in the world as a whole so that's why Money/Risk Management is key to our survival as traders and humans as well. Good luck & good trading!

Shorting Long Term Bonds - Sold TLT at 129.59 on June 05, 2012.

Long term Yields are reaching all time lows. I'd like to buy them for a change.

Sold the Long Bonds through the TLT (iShares Barclays 20+ Years Treasury Bond ETF) yesterday at 129.59.

BAC - The next great Short

Bank of America Corporation / BAC - 1st in Volume traded and 45 in Market Cap.
Seems everybody wanna see $10. I myself see overextended move on falling Volume. What more could I ask besides 1.42% Short float?

Looks like a great Short to do.

AAPL begs to go SHORT

The favorite stock of the investing world and the favorite company of all the 'other' world is now paying dividend. It's on a massive extended trend and above 600 now. It's like everything is just fine and it will go to the Moon. I like that. I like that everybody likes AAPL and wants or already has it. This is why I wanna go Short around here.

ADX based on Wilder's notes is a good reversal sign when over 60. and all other techs are way over-extended as everybody could clearly see.

S&P 500 (SPX) - Calling it a Top

S&P 500 Index and global stocks as a whole have been enjoying quite a fancy rally for the last 6 months since the Lows of October 2011.

I could skip the fact that the rally since Dec 2011 is unfolding in a perfect 5 waves pattern. I'm much more interested in my favorite Bollinger Bands that are quite overstretched just like any other technical indicator, pointing to the unsustainable state of the trend at these heights.

Seems to me we are back into the good old days (2004-2007) when we had the Carry trading in FX and all the stocks markets were fostered by the steady selling of YEN for all other higher yielding currencies.

I might just call it a hunch but I'm rather sure we witness a good correction at these lofty levels.

YEN Crosses - Time to Rest & Reverse?

AUDJPY Weekly.
Looks like H&S, doesn't it?

AUDJPY Daily.
Looking for 105 and below if the Resistance at 110 holds, however it seems like forming a lower Top.

EURJPY Weekly.
Trend is still down. Ichimoku cloud is still making it hard for the Longs.

EURJPY Daily.
Same here. Betting on Lower Top formation + overextended momentum technicals.

GBPJPY Weekly.
Rather non-spectacular performance these last 2 years for "The Beast". Still under pressure.

GBPJPY Daily.
Overextended techs and weak below the past Resistance levels around 130. Looking for a revisit of 126 at least.

S&P 500 (SPX) Index - Consolidation Range at the Top

SPX is trading inside the 1340 - 1360  consolidation Range after the reversal off the recent Top around 1377.

The SHORT Perspective::
The Upside is Capped by the 20-Day MA. I have 1325 and 1280 as immediate Targets of the current correction. All Technical Indicators are in Reversal mode and below 1340-1325 I'd expect an acceleration of the current corrective move.

The LONG Perspective::
The 20-Day MA at 1359 is the threshold - a Close above would signal price will need to touch the Upper BB at 1377. Still I'd view the current phase of the market as Horizontal consolidation and I'd expect the Bollinger Bands to show further contraction as the Distribution phase unwinds.

Sold AAPL Short @ 542.92 / NASDAQ is on the verge of a breakdown.

Markets seemed to me rather overextended for quite some time. I was looking to a clear sign of a breakdown.

 

 AAPL Weekly chart suggests we see trend deceleration but the larger time frame does not give a clear signal.

AAPL Daily chart has a confluence of technical signs of a pending collapse so I sold it 2 hours after the Open at 542.92. Price has stalled and is currently trading inside the Bollinger Bands. Slow Stochastics are giving a warnign sign of weakness and my favorite ADX is giving a reversal sign with the Trending strength at 68.69 it looks like it has a limited potential to go much higher from current levels for the time being.

NASDAQ Composite Daily chart. While it might be nice for AAPL to be supported by the love of the whole world the NASDAQ is giving a clear sign of weakness and reversal is a matter of a few sessions. All techs are already in reversal mode and while typing this we are already -1.34% on the NASDAQ and -2.08% on AAPL.

AAPL - my favorite SHORT candidate + Markets at critical juncture

Calling tops is an ego play anyway I had this feeling we are at a critical juncture here and wanted to post a reminder and make a check on the broader picture and especially this, favorite to the whole world, super cool stock AAPL.

Everybody loves Apple and everybody wants or already has iPhone / iPad / iPod / Apple TV and whatever this company produces. Checked the current P/E is 15 on BBG and it looks cheap. Anyway I like that everybody thinks it is a great company.


Short float is only 1.14% which is great - don't like much company in the boat for now.. All analysts rate it Buy/Out/Overperform. So the whole world likes it and most probably has it.

So what happens when everybody has it? There is nobody to buy and the price drops 15% in a day. 

I don't care when. I assume it might have a spike to 580/600 area which will develop into a Blow-off top and then there will be fun times for the shorts which I will be in.

AAPL - Weekly chart has that super Bullish 8 last candles closing outside the Bollinger Bands and Volume supports the Trend. So I will wait for a close inside the BBands and a Blow-off top / Island reversal as a sign.

AAPL >  Daily chart  has all the Technical Indicators I use in an overextended mode. They only lack a Reversal sequence of a 3-5 days to turn down and signal the Top.

Russell 2000 Small Caps have been the out-performers in the last 2 years so once I see weakening here I assume we have to fold, go Short and Hold. Weekly chart has the price action already inside the BBands, and the rally stalling in front of the May & August 2011 Highs.

Russell 2000 Daily chartshows clearly the encapsulation of the price inside a tight range which I assume as Distribution phase of the current 3 month rally. BBands has narrowed a lot which means congestion.

I believe when markets reach an important levels like 13 000 Dow they would like to pause and go back for a happy retreat. It's that simple.

Global Macro: Stocks are poised to collapse on the back of rising Crude and Debt. USD a necessary evil.

ZeroHedge published an interesting piece on the US Debt to GDP ratio passing the 101% mark:

http://www.zerohedge.com/news/us-debt-gdp-passes-101-global-debt-ponzi-enters-its-final-stages

So it is imperative to see the implications on the USD Index as a representation of the credit in the world reserve currency.

Obviously on the grand scheme the US Dollar Index is right in the middle of nowhere - it's in the average of the 6 year range after staging an impressive rally in the second half of the 2011. Now we are puzzled which one is worse the printing press of the FED or the sanity of the EU monetary union. And as the chart says we are equally poised to avert both of them so we are left right in the middle.

ZH shows that the FED debt monetisation is supported by the FED itself along with the next 2 most indebted global powers - UK & Japan. So what choise you are left if you want to diversify away from the Dollar?

GBP? Look at the economy and the scale of Debt-to-GDP ratio?

JPY? At the time it makes all time highs and the BOJ & MOF are desparate to weaken it through never ending interventions?

EUR? With the Greeks and the Italians and the Irish and the Spaniards?

How about Chinese RMB or Russian roubles?

Or simply buy Gold at the historic Highs and pray it is a true safe haven in the time of pending inflation. The Debt monetisation of the FED has been fueling the Stock rally in the last 3 months and the S&P 500 is making new High close to the H1 2011 High.

Problem is what stocks will do when commodities breakout on the upper end. Case in point Crude oil breaking above $105 and making things worse for the producers and transportation.

This simple fact finds an evidence in the classical technical analysis convergence between the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average which by the classic Dow Thoery are necessary to confirm each other and this obvious divergence calls for a breakdown.

Защо пазарите имат значение? Или нямат?

11.12.2011

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Защо пазарите имат значение? Или нямат?

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“Обикновените хора” не се интересуват от пазарите. Когато случайно стане дума и ме питат с какво се занимавам и отговоря, че търгувам с финансови инстументи, срещам много интересен спектър от реакции. Някои просто махат с ръка и казват “ооо, това е казино” или “оф, ужас, това е толкова скучно”, за други е просто нещо объркано, трети имат мнение за банкерите и финансистите, което не е ясно как точно е било формирано, но е подчертано негативно. А с четвъртите ми е най-забавно. Вчера имах характерен разговор с мой познат. Случайно стана дума, че се “занимавам” с акции и валути и той каза “ей, ако знаеш, един познат преди време ми даваше съвети и аз така се набутах с едни акции, че сега са си вечно мои”. Не питах от любопитство. Само му казах “купувал си септември 2007, нали?” Много ми харесва как после се учудват, че съм познал точно кога са се набутали. Чували сте анекдотите за това какво да правите с акциите си ако и шофьорите на такси ви се хвалят каква е доходността на портфейла им?

Обикновените хора не искат да се занимават със “сложни” неща като борсата, финансите и подобни неща, в които има цифри. Особено цифри, които никога не спират да се променят, както са котировките. Интересно е, обаче как като стигне до тях слуха, че на борсата се правят луди пари, всеки изведнъж много иска да инвестира. После стават дългосрочни инвеститори в активи, обезценили се с 90%. Бакалската сметка е, че ако загубиш 90% от капитала си, после трябва да направиш 900%, само за да се върнеш в началната точка. Титанично, а? Основният принцип е на първо място никога да не си позволяваш да достигнеш до такава титанично тъпа ситуация, но пък живота учи, че всичко е ясно, когато е късно. После сме много мъдри, ама ex-post, казано на латински, за разкош.

Друг интересен факт е, представата на мнозинството, че всеки може лесно да се научи да прави пари. Отваряш си сметка и почваш да търгуваш и готово. На практика, обаче живота винаги ни връща към равновесната точка и излишъците и дефицитите се балансират. Това е фундаменталния принцип на живота, който важи и на борсата поради простата причина, че финансовите пазари не са нищо по различно от кумулативна проекция на надеждите и страховете на хората. Затова и случващото се на пазарите има значение, защото наблюдавайки емоциите на хората ние научаваме много интересни неща за себе си, за егото ни, както и за кумулативната емоция, която е завладяла света в момента.

Знам, че е трудно това да се смели. На баба ти на село не й пука за пазарите. Помисли отново. Баба ти не е затворена система. Тя може да си издои мляко и да извади картофи, но нали трябва да получи пенсия, например. Или да си купи хляб или захар. Пенсията й освен от мизерната държава, зависи и от инфлацията, а въпросната инфлация, не зависи само от конкретната държава, а и от световен фактор като Федералния резерв (“Фед”, Централната банка на САЩ), който в световен план определя цената на парите. Да погледнем една много проста графика. Тя не само е проста, тя е просто красива, защото с един поглед казва всичко, което е нужно да знаеш за случващото се в момента, за кризата, за инфлацията, за Фед и за кумулативната емоция на хората в света.

Златото.

http://goldprice.org/gold-price-history.html

Е, колко сложно е да разбереш какво се случва в света като погледнеш тази графика? Като погледнеш една планина как се издига нагоре и не те ли обзема лек страх, че може и да я изкачиш до върха? Или като видиш една подобна огромна вълна да се издига, не те ли е страх, че ще те смачка?

Тази графика казва точно това. Огромен страх. Хората ги е страх, понеже се печатат пари и един ден това неминуемо ще се върне и ще ни захлупи като огромно цунами под формата на инфлация. Първият “подскок” там към 80-та година е така наречения петролен шок, това е било преди много години и няма да даваме повече графики, които да покажат как цената на петрола се е качила и защо, но тогава инфлацията много сериозно е уплашила хората и те се опитали да се “скрият” чрез златото.

Има ли значение това? Ти ако живееш с 1000-1500 лева и за месец всичко отива за наеми, вечери, дрехи и партита и не спестяваш, к’во ти пука? Принципно и да ти пука няма особено значение, понеже какво може да направиш? Нямаш милиони да се чудиш как да предпазиш стойността им. Стойността, защотото както знаеш, 1 лев сега е по-скъп от 1 лев след време заради тази въпросна инфлация. На по-възрастните им пука понеже пенсиите им са във пенсионни фондове и тия фондове са управлявани от живи хора, които по презумпция трябва да знаят как да ги управляват, но на практика дали е така?

Това е като вица за бащата с 3 дъщери, където по принцип трябвало да са много богати ама на практика... Не знам, в живота всичко е относително и се разбира в отношение към нещо друго. Според Платон в древността, управляващите е трябвало да са най-мъдрите от общността, за да направляват живота и в правилната посока. Днес дали е така? А дали някога въобще, Това е разликата между реалността и света на идеите. Света се формира по идеите на хората, които имат силата да ги реализират, но това не означава, че непременно тези идеи, които ни харесват се реализират. Нормално е тези, които са по-силни да формират света по техните идеи.

Отново за златото. Един от настоящите хедж фонд звезди, Кайл Бас от Хайман Кепитъл, каза в едно интервю от преди месец: “Buying gold is just buying a put against the idiocy of the political cycle. It's That Simple". На прост български това означава, че купуваш злато като застраховка срещу идиотщината на политическия цикъл (под PUT се има предвид Пут опция, което е деривативен инструмент, който просто казано е застраховка, в случай, че те е страх, че цената на даден актив, на “нещо”, ще падне). Толкова е просто.

В момента живеем в много интересни времена. Китайците имат една поговорка, която беше нещо от рода на “Да не дава бог да живееш в интересни времена”. Предполагам идва от факта, че там от древността непрекъснато са се водили войни и с победата на една или друга страна се е стигало да масови избивания. Четох скоро в един исторически сайт за онези времена и бях шокиран да разбера, че след всеки подобен интересен исторически момент населението е намалявало с примерно 60-70%. Подобно е било всъщност навсякъде, и в Европа и тн. Ето линк: http://www.hawaii.edu/powerkills/DBG.CHAP3.HTM. Нормално, всяка нова власт, която се издига върху кръвта на предишните иска да заличи всички предишни спомени, както и паметта за всичко, което е било преди това. За справка министерството на информацията по Оруел в “1984”.

В момента правителствата чрез централните банки “печатат” пари (сега вече не се печата реално, понеже всичко се прави по електронен път), за да могат да стимулират замръзналата кредитна състема, да финансрират дефицитите си и това просто създава една огромна купчина пари, която обратно пропорционално губи своята стойност. Твойте пари носят тази стойност и тя намалява с увеличението на общото количеството. Поради тази причина и хората в 21-век търсят убежище в златото, тази “варварска релкива”, както го нарича Лорд Джон Мейнърд Кейнс. Не ви пука за Кейнс? Не е важно, просто този брилянтен джентълмен през Великата депресия през 30-те ражда и развива идеите за намесата на държавата за балансиране на икономическите процеси. Днес като чувате, че в криза трябва да се инвестира в инфраструктура, мислете за Кейнс, не за ... даже няма и инициалите да пиша.

Както и да е. Всеки намира в живота нещо, което го интересува. Аз имам желанието да споделя скромното си наблюдение как всичко е свързано. Пазарът е просто един механизъм, който определя цена и стойност. Съвсем кратко искам да подчертая, че цена и стойност са различни неща. Цената отразява емоцията, а стойността трябва да е нещо фундаментално основано. Просто обяснено ако имаш един ключ, който струва 1 лев и той е за клетката за осъден, то осъденият би платил цена многократно по-висока от 1 лев, заради проекцията на стойността на свободата, която този ключ би му позволил да купи.

От малки ние използваме същия принцип, който намираме на пазарите. Когато вече с плач и сополи не получаваме каквото искаме се научаваме, че трябва да намерим нещо достатъчно ценно, за да го заменим за това, което искаме да придобием. Цената на любовта? Принципно може да ни се струва безценна и съкровена. Да идеята за любовта, предполагам е такава, но на практик? Това как точно е по-различно от борсата? Ако има търсене на 30 лева и някой е готов да предложи на тази цена удовлетворение – готово, имаме сделка. Едни активи се търгуват на 30, други на 3000. Зависи от проекцията на стойността, която купувача възприема.

Всеки от различните детайли, засегнати тук, е много повърхностно представен. Извинявам се ако съм допуснал грешка и ще съм щастлив да науча за нея. Опитвам се да представя просто една гледна точка, което естествено е един динамичен процес, защото с годините ние както трупаме повече знание, така и променяме начина, по който гледаме и оценяваме както знанието, така и реалността, две неща, които често се разминават както цената и стойността.

AUD/USD: Selling against the 61.8% Fibonacci level

The rationale here is pretty clear. There is a pretty strong Resistance cluster at the 61.8% Fib at 1.0340 and the 200-Day MA at 1.0412.

Tentative selling here with a scope of the 23.4% Fib around 0.99.

Breakout signal in Brazilian Gol Linhas Aereas (NYSE: GOL)

Gol Linhas Aereas Inteligentes S.A. (NYSE: GOL) operates as a low-cost low-fare airline in Latin America.

Recently the major Brazilian airline TAM was pushed as a buy candidate by major bank research paper. However I like the price action in the minor airline and find the technical picture much more compelling. 

The chart shows a breakout signal confirmed by a close above 8 with an immediate target at 10.40 and risk below 7.5 which gives a reasonable risk management profile of the trade setup.

Fading the Euro Optimism

EUR/USD Daily chart looks like stalling at the 55-Day MA at 1.39 just shy of the 61.8% Fibo at 1.40.

It seems like too much effort has been wasted on pulling that stunt so far - 5 days in row tight range and with usd/jpy finally dropping to punish all those easy believers in the BOJ magic + the dissapointment of the EU summit time looks ripe for some reaction.

In addition the 55-Day MA at 106.74 doesn't look like easy beam to hop above.

FX Majors ( € ~ £ ~ ¥ ) ::: Trading the RANGE

Kapri Just entered those positions based on the assumption we are trading in the established range:

Short EUR/USD 1.3782
Short GBP/USD 1.5768
Long USD/JPY 76.88

Risk on a breach & close above yesterday Highs & Lows respectively, so looking to add in that space until the inflection point is not compromised.

   ~   ~   ~   

EUR/USD

Daily chart show 1.3850 as a major Resistance level (50% of 1.4555 - 1.3147).

GBP/USD 

Daily chart show 1.5789 as a major Resistance level (38.2% of 1.6627 - 1.5272).

USD/JPY

Yen finally started moving after the extremely tight range congestion in the last 2 weeks.

Yen has appreciated to multi-year highs and MOF/BOJ wouldn't be feeling comfortable with these levels, hence the fear in the market with an FX market intervention. Given that premise the LONG side is favored.

One can use both the 76.30 and 76.78 as SL levels - or one could average till 75 if the price goes that way on the assumption the BOJ will defend those multi year lows in USD/JPY.