Good Morning Traders and Investors,
It is 14 degrees outside and the snow is LIGHT and FLUFFY – too bad we can’t do anything with it as there isn’t a base underneath!
If you are looking for trading opportunities this week, be careful as the base (volume) may not be support the moves that you see. This is typically a very light volume week, but moves can be exaggerated as volume is thin.
Not much data today, so it looks like at the onset, traders are trying to push the market higher. Tuesday and Wednesday present a SLEW of data, so there will be opportunities, but BE CAREFUL!!!!! One wrong trade and the moves may dry up and you are left with a bad week going into Turkey Day.
The psychology this week is trade, but trade with the throttle pulled back.
On the investment side – the trend remains the same – up – just keep an eye on the aforementioned economic calendar for clues to how the economy is plugging along.
Regarding Forex specific trades – one good opportunity is all that is needed to make for a good week – hopefully 2 or 3 come along, but forcing trades is out of the question! Until the dollar breaks out to the downside to continue its swoon, I think selling dollar dips at support/good locations is a decent trade. We may just get that trade today as the dollar is getting hammered in direct relation to higher equity futures.
Happy Trading and Be Environmentally Cool
