Tuesday, February 1, 2011

2/1 pre-open

The stock market has broken free of the 30-minute M/A by exceeding on a 30-minute close 1284.50. SP rallied to resistance at 1290.  I can now expect a pullback to the 30-minute M/A.
The Euro has double-topped with a clear 3-wave and should have a minor decline in line with stocks.  The linkage with the stock market remains strong.
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3 comments:

  1. pimaCanyonFebruary 1, 2011 at 7:29 AM

    Good morning, Steve.

    I'm curious about your short Euro position (EUO). You're long stocks, but short Euro. Because Euro and stocks tend to move together, I'm wondering why, if you expect stocks to go up, are you shorting the Euro. If stocks do go up, the Euro will likely go up as well, no?

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  2. SteveKotelesFebruary 1, 2011 at 8:04 AM

    If Euro exceeds 1.4 I'll bail. Historically the Euro does not hold this strong a correlation with the stock market. Responding to QE. I expect the linkage to break prior to the peak in stocks.

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  3. pimaCanyonFebruary 1, 2011 at 9:25 AM

    thanks, Steve!

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