I am on CNBC today at 11:25am, and on Bloomberg over the weekend for the MoneyShow. The analysis of yesterday was obviously stating the obvious: that 1500 in the SP500 was important support. It broke, and I was obviously happy it did so, as I was short as per the analysis yesterday. What annoyed me this morning was that I was not short the Dow. The FTSE and the DAX are nowhere near as weak as their big brother in the US. This means my profits was rather disproportionate to the potential, had I been short the US....
I will post my Bloomberg charts for the weekend show tomorrow morning....
I have taken a short position in Gold yesterday. I am also LONG the US dollar now, ie short Euro and short Sterling. We have the interest rate announcements due in a couple of hours. I think this will be make or break for the Dollar.
Good luck today
Tom Hougaard
TraderTom
7th November 2007
update 09:36am: it is the mornings of extreme. I am preparing myself for some wild swings today and for the rest of the week. FTSE was called to open flat, instead it opens up 40 points. Gold has rallied to near $850. It is up $20 in the morning session. The Dollar is trading at $2.10 to the pound. It seems like the whole world has gone crazy. The Dax is now down on the day by 36 points, after being up 25 points. I am short the DAX and the FTSE right now. The reason is something I heard in passing on CNBC: If the US dollar begins to slide further, it could really impact the equity market. I suspect that the selling in the European indices are the result of the run on the dollar. I can't find another reason. Oil is trading at record highs and should drive up the FTSE, but it isnt.
The SP500 bounced heavily off the 1500 price level, and closed up at 1520. It is already being called down 15 points now. The 1500 level is crucial, as you should see on the chart below:
NEXT UPDATE depends on when I can get internet access again, but I am gunning for tomorrow morning.
Darn Google!!!
Anyway, I got stopped out yesterday at a painful loss. Well, I am sure I will have the last laugh in this sorry tale of roaring revenge. I shall keep the chart below for a moment to remind me that Fibonacci does not always provide rock solid signals :)).
I will update the site over the next hour. I have had some rather severe problems with the connection to the site combined with my website manager having his annual holiday... I will update by 10am
ANALYSIS
