Post-Election Trade Ideas in FX & Stocks
NOTE: this was the report sent out to Aspen clients on Friday November 11, 2016
FX Technical Outlook
Good morning traders.
Let’s take a look at the Dollar Index (DXC) this AM.
First, as the daily chart below shows the path is clearly higher for DXC in the days and weeks ahead.
If we look simply from a ‘relative strength’ perspective, using this pull-back in DXC should allow for good entries in USD/JPY (longs) and EUR/USD (shorts). Both of these pairs ‘outperformed’ DXC by .70% (EUR/USD) to as much as 2% (USD/JPY)
EUR/USD – an opportunity to go long and then short
USD/JPY – setting up for a powerful move higher. Just strap on your seat-belts as this one (aka The Eye Gouger) can be unforgiving.
Back with updates later.
I am still looking/considering shorts in AUD/CAD and AUD/USD.
Stocks/Options Technical Outlook
Traders, there are a couple of trades that are on radar. Let’s take a quick look at them from a technical standpoint.
The other consideration is that what is labeled Wave a above might be a smaller degree ‘a-wave’ of a larger ‘abc’ correction….like this:
- Long FCX?
- Short HYG