Why do I say that? Big Ben with positive news that he thinks the recession has past, or at least the worst is over. Words like that and the recovery of the housing market was the reason that Wall Street closed at it's highest point of the year, making the EUR/USD flirting with the 1.44 mark. Fantastic! If only the Obama administration didn't make one of the biggest errors in history mis-calculating an extra 2 Trillion in deficit money, by the way released after the markets close!, it would've been a perfect story! Now especially the last part is over looked because some investors want to ride the Wall Street momentum train further.
It's not going to happen. This is almost a no-brainer! Come on guys! Am I the only one that sees this or does everyone have other information I don't know about?! There's no way the DJIA (let's pick a main indicator) is going to close higher next week! Not with the news that an extra 2 Trillion (and who knows if they're done counting) 'unexpected' deficit, that the Obama administration miscalculated, is looming over the rest. It will directly affect the EUR/USD pair and the USD index as a whole for that matter. A perfect sell opportunity has emerged! With the EUR, once again, way overbought and with the markets the way they are this will be a perfect time to be right on the money! (I can now use that)
Well, especially my pair that I trade regularly. The EUR/USD baby! Get it around this price, maybe even anything above 1.43 with a SL @ 1.44. I expect a huge drop! Correction maybe even to 1.41 by the end of the week, and yes it's that bad. We're due for a slow, very slow recovery and I still stand by my point that the DOW will close over 10K by the end of fall, but until then it'll very shaky.
- Happy trading!
Follow-ups throughout the week and on Twitter!