Monday, October 06, 2008

Weekly Report for ER - Oct 6th - Oct 10th '08


Dominant TF: Daily (we notice a drop in significance level on the 60mins chart)
Swings: DN-DN-DN from UP-DN-DN
Market Direction(daily): short of course, but staying cautiously away isn't a bad idea either.
Options (RUT): better wait for the end of the storm here too.

Last week monday, i warned again that we couldnt see the end of it, and i have to say the bottom is still to be found even if it may at last occur this week now that the bailout plan has been approved. Certainly not visible yet, but chances are that prices would settle soon. A number of banks and financial institutions are now ready to go shopping for bargains.

EURUSD: crazy week for €/$, which we followed fairly accurately on shorter time frames. Yet, volatility still surprised us with targets hit much quicker than anticipated. The 1.3672 level was broken in short time frames indicating a possible target on 1.3521. We'll be QUITE careful though as the € could also bounce strongly. It certainly looks possible on longer time frames.

60mins: drifting down again
Where and when is this fall going to stop ?? 625 looked like a very reasonable support level and breaking it now opens the way for a seriously bearish market. Are we really now targeting 577 ? Only a quick bounce early in the day would keep the 625 level valid.

Daily: down !
Tiny chance of a support level around 610, but is this wishful thinking...? All indicators are down, and looking for a support level right now in such a high volatility environment is ludicrous. Again, either carry on trading short time frames in the direction of the daily chart, i.e. short, or stay on the side line for now

Weekly: market crash... there is no other word for it
While 625 is not "officially" broken, it is not looking good.
We'll give it another chance this week still, as the market could digest the bailout and volatility settle a bit. This headache must stop first.

ON ACCOUNT OF THIS EXCEPTIONAL MARKET SITUATION, SNAPSHOT UPDATES WILL BE POSTED ON THIS PUBLIC BLOG THIS WEEK AGAIN