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Showing a little exhaustion, AUDUSD may slump to .8850
By no means am I calling a top in the AUDUSD, however if you are chasing the trend from these levels be prepared for some drawdown before you see profits.
Today's S&P 500 hidden truth.
I don’t like it when I read headings like "US Stocks climb for three days straight" or "Stocks rise on earnings growth". Why, because they only tell half of the story. Sure, it is indeed the third straight days that stocks have risen. Sure there was a bottom line growth in Alcoa today. However, couldn't the headline read something like this, "Indexes split as earning come on cost cuts" or "Cost cutting again lifts some stocks". These tell the true story. The DJIA closed lower today, the S&P500 didn't pass yesterday's high, and half the day was spent in negative territory. I guess feel good sells as reality takes a back seat.
USD finds support
Those following the blog will notice that the USD  Bounce was expected, and should have traded only to the USD plus side. In yesterday's post, I specifically showed 76.50 and 76.75 as possible targets for the index. Now the index will get pulled by sentiment related to equity flow and growth perceptions as earnings begin to be released. Expect skepticism to grow as bottom lines improve on more cost cutting not revenue growth.
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Last Updated on Wednesday, 07 October 2009 22:39 |
Market Updates 
