Wednesday, November 9, 2011

Market Update Nov. 9th/2011.

"It was never my trading that win me money in the market, but it was always my sitting tight."

Our system suggest a stronger Euro. Despite Greece and Italy heading to bankruptcy. Current price is 1.3787.

As we said on Nov 4th/2011 update, we preferred the pound over the euro. For now the British currency seems to be the leader and euro the follower. Current price is 1.6110, and we do expect a higher pound. We are cautious as our cycles are topping both short and long term, by next week we will prepare to take bearish bets.

Even though we expected more than a 100 pip move to the downside in this pair, Mr Market hasn't allowed more than we wanted. We rather get out with whatever profit for now since we recommended to short this pair around 1.0182 and wait. Cycles both long and short term are bottoming, therefore we will wait for the right time to go long this pair.

We recommended to buy the Aussie on Nov 4th/2011at 1.0397, since then, the Aussie has gone down. Our system is not showing us a clear picture anymore. Its better to cut losses short for now and wait.

We said to buy gold at $1760 per oz. on Nov 4th/2011. Since then gold prices have climbed and reached the $1800 level. We are experiencing some correction, but cycles and the trend suggest higher gold prices. Hang on for more profits. Current price level is $1784 per oz.

Expecting silver to follow the Yellow shiney metal. Our system is still betting on higher silver prices. Current prices is $34.92 per oz.

Crude Oil
We recommended to buy crude at $94.25 per barrel on Nov 4th/2011. As of this writing, the price stands at $96.58. Both short and long term cycles are topping for crude. The easy money has been made already, therefore we don't recommend adding positions, rather take some profits to the bank. Because of cycles topping in crude we expect the Canadian, Russian, Norwegian currency to begin weakening sometime next week.

Besides a correction from current cash price of 1270 area, overall the trend in the S&P500 is up.

Expecting the same for the DOW. The S&P500 and DOW are in a similar pattern. Current DOW cash price is 12110.

Same goes for the Nasdaq100 futures. Except the trend in the NASDAQ seems stronger. Current cash price is 2390.