Kruger Insights Friday – January 3, 2014 by FirstMacro

BinaryOptionsNow | Published on January 4, 2014 at 7:31 am

AnyOption review

By: Joel Kruger
Out Of The Box – A really nice start so far to 2014. Over the holidays I had been trading in and out of the S&P and managed to catch a nice little short position. I had been selling right into the closing hours of 2013/opening hours 2014, and at present, look to be well positioned following Thursday’s bearish reversal day. I currently have one open position from 1847 and will be looking to see if this short-term price action can materialize into a more meaningful corrective reversal. A break and close below 1820 on Friday would be required to confirm. I always like the idea of taking advantage of markets that have pushed in lightened holiday trade. With US equities closing out the year at record highs and well over 1% above where the market had been trading at full pre-holiday capacity, the opportunity to fade the strength was more than compelling. More often than not, a market that extends in thin trade will have a very good chance of retracing the extension when conditions normalize. I would say S&P 1820 is about where we were before desks lightened up, and so at a minimum, we should see declines back towards this level. As per above, a break and close below 1820 would set up a bearish reversal week and more significant chance for a legitimate pullback below 1800 in the sessions ahead. Of course, it is still way too early to call for a meaningful top, but the chances for such a top at present seem to be quite legitimate.
kruger insights december 3, 2014
Still Waiting On The Yen – Moving on, it is no coincidence the Yen has been rallying of late, with the Japanese currency still inversely correlated to US equity performance. I have been warning of a Yen rally for some time, and have been looking for an opportunity to aggressively sell Yen (buy USD/JPY) into a sizable short-term dip. At the moment, I would be happy to see a drop back towards 100.00 for a chance to get long. Medium-and longer-term, the outlook for the Yen is not pretty and I am projecting a USD/JPY rally well above 110.00 in 2014. Elsewhere, the Euro has come back under pressure after a final surge to major falling trend-line resistance off of the record 2008 high, and could be in the process of carving the next major lower top ahead of a resumption of weakness down towards 1.2000 in the months ahead. Fow now, 1.3625 is the level to watch. A break and daily close below 1.3625 would strengthen the bearish case and expose deeper setbacks towards next key medium-term support at 1.3295. One of the most interesting developments with currency price action in Friday trade has been the relative outperformance in currencies like Aussie and Kiwi, while the Euro is softer and the Yen stronger. Seems like a bit of a hodgepodge to me. I wouldn’t get too excited with the gains in the commodity bloc currencies and would recommend looking to fade these moves. Finally, EUR/CHF has enjoyed a nice little bounce back over 1.2300 in recent trade but I would be careful with this one. I still believe there are risks to the downside here and expect any additional gains will be limited.
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