Monday, March 7, 2011
Bears Showing up for a Fight; Euro Shorting Opportunity for Aggressive Bears
I'm very short on time but am posting this since some significant developments occurred today.
Internals were very bearish again today, and on a Monday no-less, which has traditionally been owned by the bulls. The internals weakness along with some small 5 wave counts on the smaller timeframes and the breaking down of 1312 at today's close make it an interesting play for the bears here.
1312 was taken out today at the close, erasing that big bullish surge last week and triggering a short position on my part. Under this count above, a series of 1s and 2s are unfolding and should soon give way to a wave 3 at several degrees which essentially means a sharp almost straight line down. As long as 1327.68 remains intact, I feel comfortable being short here, a break below 1294.26 will make me extremely comfortable.
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As for the euro, today's reversal looks nice but didnt' really break any key levels or support. But the action in the AUD/USD and GBP/USD on the other hand, looks very bearish. I took an aggressive stance and shorted the euro on today's weakness against the recent highs. With stocks looking poised to possibly fall hard and the euro overbought, I thought I'd take a shot. But right now this is more of a calculated gamble with a very small position rather than calling a solid top and putting in a big long term position.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.