Conviction: 3/5 Seems to be turning down away from LT (2002) channel resistance. RSI-W also signaling further downside. Looks like there might be an intermediate-term support around -10% away. All in all.. may be a better risk:reward trade once it breaks down from the white support line. Either way, the trend looks negative. If you are interested in Europe,...
EZU nice ABC move with 3R potential The Euro market is still hot. and this ETF is near by buy zone. Just a little more pullback to Fib 618 and its go time.
What will be the problem: Brexit, Greece, Turkey, DB/italian banks/swiss banks or the new refugees crysis? Maybe, all together plus something else which we are not aware of yet? Probably, this is the reason why the ECB won´t taper the QE programme?
Momentum indicators starting to get toppy. Lots of money rotated into europe last week. A tough trend to fight. Still looking like upside potential but needs a breather soon. seeing all the money come out of US equities. Mainly SPY etf suggests to me that high fliers like fang to get under pressure this week.
Call me Crazy, w/ the Euro depressed and expectations for another brexit, i'll add this on a longer term basis.
This a bearish trade on EZU using a 10/16/15 vertical put spread. Go long the 10/16 $34 put and short the 10/16 $33 put, with a limit order at $0.34 per contract. The max gain per contract is $66, and the max loss per contract is $34, for slightly less than a 2:1 risk/reward ratio. Hold until expiration.
Not one false signal in the last ten years.