Game Plan:2/11/2012

Market:  Eurex EURO STOXX 50 Index Futures, $FESX_F

 We keep our short bias due to cross assets divergence in Europe ie: Equities/Currencies, and in US Oil/Equities. We will look for selling opportunities below the 30 mark.  We will keep a closer eye on the Eur/$ because a bounce in the common currency will invalidate our trade

A breakout of yesterday's highs will drive the market to test the 2575 mark, the NFP numbers will be today's game changer.

 After 40 points run the shorts stance was kept in place, yesterday's bounce closed the trade but the underlying reason to fade the up-move are still in place, and the divergence between the Eur/$ and the $FESF_F is supporting the idea that the picture is incomplete

 

Market:  GBP/JPY $GBPJPY

Buy/Sell?:  Holding into the long position

Market:  GBP/USD $GBPUSD

We have been tracking the pair for a while, within its range; failed test of upper resistance points to a move lower. However with NFP tomorrow we hold significant event risk; a good number potentially pushing risk on.

 

Breaks of the 1.61 mark along with further rejections of the 1.6185 mark should see a move lower, Break and hold above the weekly R1 at 1.6190 should see a test a September highs at 1.63.

Originally posted at www.77sigmatrading.com