The Mars Market Update — Live Research

The Euro turned down where it had to and I really don't want to see it back above the day's high (1.3324). Bears need to see this trade impulsively back below wave (b) at 1.3232 to lock in 3 waves up from the lows.

While equity markets consolidate their gains at new all-time-highs, the US$ is threatening to break down, nearing my GTFO levels for both the Euro and Pound. Who said trading is easy? That's right, no-one! This is why we manage risk. We do the analysis, identify trade setups, execute within well-defined parameters, then let the markets decide what they want to do. My trading strategy is all about playing great defense, limiting risk to any one trade to 1% of capital. My entry level positions...

The equity markets closed the week on their highs once again as dip buyers prevailed in the face of uncertainty. The trend is up. Price is the final arbiter of performance and there is no stopping the bulls here with global liquidity providing the wind in their sails. As the disconnect between the underlying economy, societal mood and equity valuations continue to reach extremes, so does the risk of a market shock. The waves tell us we are in the 9th inning of this bull market since 2009, but...

GBP/USD reached my sell zone 0.618 retracement of wave (i) decline and where wave c of the expanded flat equals 1.618x wave a... bigger picture short against wave (2) highs. Will look to add on price confirmation...

Euro spiked into my sell zone following NFP report. I am counting this spike higher for a (c) wave of an expanded flat wave 2. See below... This count is wrong at new highs above 1.3345

Well, the bulls dug their hooves in as most global equity markets charged higher.  The broad based buying likely represents the kickoff to wave iii of (v) with a gap & run, trapping anyone still short. This rally from late June has been fueled by overnight buying, featuring open gaps higher with consolidation/digestion during the day session. Last night was no different.  The US$ also featured strong advances against ALL pairs including EUR/GBP/CHF/JPY/AUD. It looks as though the bull...

Pre-open update - given the strength in the pre-market, the immediately bullish option needs to be put on the table. Rather than an ending diagonal, it may be a leading diagonal with a 3rd wave rally dead ahead... Caution for the bears right here. See potential count below... The US equity markets have chopped their way higher since my last update with the DJIA and Nasduck making new highs, not confirmed by the SPX/BKX/DJT/RUT. The Pound has broken down impulsively while the Euro continued to...

Just for the record, that was a terrible trade. Given I was expecting a c wave lower "at best" targeting 1670, risking 9 pts to make 17 (2:1) was a mistake. My trading rule is NEVER take a risk/reward trade with less than 3:1 R/R. Mr Market charges a fee for tuition. Never break your trading rules!