Tuesday, December 13, 2011

Euro update - Swing sell


Euro is out of the trendline that held it for the last few months. The implications of this trendline breakout are very negative. It means that the downward spiral from here will accelerate. Sell all rallies, same with AMZN (check my weekend post for the chart).

I also got a swing sell for the market. You can use any price appreciation today to sell SPY short with a 5% stop from here. I suggest you do that after the FOMC meeting update. I know we are not expecting any QE but who take risk even on a 1% chance? If FOMC statement is neutral, there will be a dip followed by a rally. I expect today to close in positive. Either way you can use any strength to sell. I don't think 0.5% on a ST signal matters, safety first!

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