We got very close to our target of 1.28 and went long USD EUR at 1.2840, taking profit at 1.2917. We had a punch through the bollingers at 1.2927 and used it to establish again a small short position in EUR. In this type of consolidation, with noise coming fron every front , I trade as technically as possible and try to ignore the rest. The Tradercockpit longer term indicators continue to be in a positive mode for equities, gold an silver. Longer term oil is still in a bear mode, which correlates with a weak economic outlook. Short term the rebound was shown on the one day indicator, but I did not see it in time. It is still a good hedge in case of a slippage in the Middle East, but the Saudi’s have said that they want Brent a $100/ bbl and it is normally dangerous to bet against them.
Once we feel that this consolidation is over , we will overweight heavily Hong Kong. The shares are cheap and the market reacts vigorously to liquidity expansion,
PP 1.2889, R1 1.293023, R2 1.29885, R3 + 1.3088
S1 1.2789, S2 1.2789, S3 1.2689
