Tuesday, January 10, 2012
Stocks Float Higher, Should Reverse Sharply Soon; Euro Still Correcting Before Collapsing
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The euro has managed to get of the matt a bit here and push a little over 100 pips higher from its low. But you can see that after the initial push to 1.2780, the rally has lost steam and moved choppy and almost sideways. Today the rally appears to be faltering and is trading right at the top of that initial surge at 1.2780. A solid break below that level will be the first sign the rally MIGHT be at an end. A sustained break below 1.2720 would most likely signal another major top is in. But I'm not waiting for that. I'm already adding short right now, and if it rallies higher then I'll short some more. Nothing about the euro's charts or the overall European and US economies suggest a euro bottom (US dollar top) is in place. So I'm focused on the short side big time right now.
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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.