The stock markets were once again the centre of the action heading into the weekend, enduring a highly volatile session with the DJI ending -1.2%, S+P – 1.7% and Nasdaq -2.1%, which has also lost 10% over the last month. It could have been a lot worse on Friday but the indices did bounce to finish well off their lows. The near term bounce may have legs to continue a bit higher but the longer term charts still look awful although the S+P is approaching weekly trend support at 2615, just below Friday’s 2625 low.
In the FX markets, the US$ weakened broadly despite Friday’s strong US data, and in the short term this looks set to continue, with the Euro, Cable, the Aud and Kiwi all looking firm for early Monday trade. The longer term charts are now looking more neutral but I suspect another test of the August 2018 low in the Euro @ 1.1300 and the 0.7000 level in the Aud$ are likely to be tested at some stage, so selling rallies is still preferred..
The commodities look set to remain choppy and are possibly best left alone today.
Economic data highlights will include:
Mon: Japan Retail Trade, UK Consumer Credit, US personal Spending, Dallas Fed Mfg Business Climate
*Trade of the day: October 29, 2018 8:13 AM(AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
All trades are good till 5.00pm NY time. All “in the money trades” should have the SL raised to break-even, or managed manually. All out of the money trades should keep original SL in place.
Sell EurUsd @ 1.1470. SL @ 1.1510, TP @ 1.1370
Range Trade: US$Jpy: 112.50 /111.50 (SL 30 pips either side)
Range Trade: AudUsd: 0.7125/0.7025 (SL 30 pips either side)
Range Trade: EurUsd: 1.1450/1.1350 (SL 30 pips either side)
Sell AudUsd @ 0.7120. SL @ 0.7150, TP @ 0.7010