Tonight's signal video is focused much more on the trends and medium to long term trading opportunities than the news since there isn't very reliable, tradable news on Tuesday. First off, if you got long on the EUR/USD from around 1.4050 or the GBP/USD from around 1.64-1.65 last week based on my recommendations, I think you should consider exiting now (1.44ish, 1.6930) or at least tighten up your stop losses to protect profits. This rally has hit the target areas I was looking for, and the next big long term overdue move south is either starting now, or starting soon. In the video, I discuss a position trade sell on EUR/USD from current levels (around 1.4380) with a stop threshold somewhere above the 1.4715 highs from December. Entering short now may be getting in a bit early (this rally might have another higher high or two left in it), but I feel it's a good time to start sticking my toe in the water for an initial short. The ultimate target on this is around 1.3000, but I highly recommend taking incremental profits along the way and talk more about that in the video.
In stocks, we also got that last pop higher to 1000 on the S&P 500 I called for earlier, so I've closed the last of my longs around 999 and have started to flip short. We're going to start a 1-3 week decline phase here soon, and we're likely either topping now close to 1000, or working towards a top soon somewhere between 1000 and 1015. Right now I'm thinking about 955 is a good downside target (since this selloff is unlikely to make new lows below 870), but I'll keep an eye on it and let you know if I think our target could be extended more towards 920, or has to be choked up more towards 970.
On Silver, we're now in that sweet spot target range that is a great price to initiate a position trade short if you're not already in. I'm personally in from $13.40 awhile back, but I've been using the volatility to work in and out portions of the position and average my entry price higher by reselling into this rally. The $14.30 to $14.60 area is a great place to add or start a short, and I don't really see Silver pushing to $15 or above on this leg, but anything's possible, especially if the Euro and/or stocks stubbornly extend their advances as well.
In news Monday, US ISM Manufacturing data came out much better than expected, hitting our buy EUR/JPY trigger and EUR/JPY managed to gain 70 pips in the first 15 minues, and 120 pips 2 hours after the report. The US news coming out on Tuesday at 0830 is very tricky and price action has been underwhelming, so I'm no longer recommending it for a trade. 1000 Pending Home Sales data is kind of a sucker trap of a trade, so I'm not going to recommend that one either. Wednesday has a ton good news to focus on, so tomorrow's signal will be focused less on trends, and much more on the news and short term opportunities they may bring about.
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