Dealing with Foreign Currencies towards Local Stock Market

The lows are in place for the Indices and the rallies have begun, on this almost extra markets join in on the confident. The subsequent question is will the rallies stay below their last highs, for the Dow Jones Index that is 10,408 the S&P500 1,100 the end line is if they move by these highs so the bigger rally up is not complete and the Dow would be up around 10,600+, that's the bigger picture on the upside, this is turn would acquire our Index higher and our money to around 92 ahead rolling above, it would be the resources instead than finance that move on this, so you will require to comprehend what levels you are working with, such as BHP being over mTL8/38.00 and CBA being over TL5/50.00.Getting back to the Dow, as a guide stick, the existing rebound, the 618% is 10,255 the present high is10,236. The reasonable maximum rather than the other high of 10,408 would be the 72% retrenchment which is 10,288 in fact the mTL3/10,300 is where stops would go rather than above 10,408. Playing it yet nearer is working with the 10,250 as hold or immunity, its okay towards it to trade above although on the retest it would need to fail. yet nearer yet, is that we can ask the cost to retest 10,200 in the next session, hence whenever sustain is establish there so exit, if 10,200 becomes the resistor then look to short, therefore it is the 10,100 than is the hold, this is the chief to extra downside anything above this at the instant is at risk! So this is the long and short of the situation as it stands and you need to manage the variable change at hand, this is also true for any short trades on the local stock market, use the daily Robo method or the levels to protect all short trades, as protecting assets is the first rule, we can re-enter using the daily Robo if the Dow rally finds its high. Day traders can use the Daily Robo to enter long for the day especially in the resources sector.

Tricky business this trading, you can have the direction right and still lose money, I find the only way to survive is by under trading, navigating through the last few weeks has been quite a task but all in all I think we have done a great job, yesterday I was a bit nervous of a more bullish picture emerging and we are not out of the woods yet, we still need the Dow under 10,000 as retested resistance, but last night's session has started to confirm we have been on the right side of the markets and we can start to look to adding to our current positions another 25% of position size.

The other important aspect is the US Dollar and the Euro turning, completing their ABC corrections, we have been patiently waiting for this to occur and moves last night help sure this up, we have seen the lead of this through the other currencies pairs. If the Dollar has completed its ABC correction, then the move up will help push Gold down, so we are likely to sway to Gold moving down from here this would see us add to local gold stock short, the NCM, LGL etcetera the key here is seeing US Spot Gold under 1180

Thursday delivers the bear day and we are ordinary to see the Dow bounce off the 10,000 again, so be careful and take this in to consideration. The volume and the closing on Friday is likely to set the scene again for next week's cycle, last week was 90% accurate looking for the high on Wednesday, so it always handy to comprehend this as it helps in adding positions into a trend over time, shorting the rallies based on price and pattern and the days of the week to align the timing.