Written by: Trader 2/19/2009 7:30 PM
Sometimes the best trades set up at the point of maximum danger. The Japanese Yen-US Dollar cross rate is in an uptrend on the daily charts. It has retraced back to the point of it's prior pivot. IF this pivot holds then there is a good possibility that you get a very good up-move. So, buy the Yen above thursday's high. Set the stop to either below Thursday's low or Today's intraday low - whichever is lower. That daily chart is shown below:
The broader stock market is still showing signs of weakness so any bounces should be temporary. Therefore short relative strength laggards (see yesterday's list) on bounces to the hourly charts, the upper keltner channel etc.
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