Waiting for those Corrections


NOT CONVINCED - I'm having a hard time seeing EURUSD and GBPUSD extending their current 2017 runs without a bit more of a pullback first. I don't haven any positions here right now and believe these markets are both in the process of carving meaningful bottoms, though I still think we should see another healthy retreat before that next upleg. With the Euro, I can't stop thinking about that gap after the first round of the French election that has yet to be fully filled. To me it would be a lot healthier for the Euro to drop back down into the 1.0730 area to fill that gap before extending its run. With the Pound, it feels like we should see a dip back below the major breakout level at 1.2775 before it looks to make that run up towards the next extension objective at 1.3500.  I have said that I like buying EURUSD around 1.0730 and GBPUSD in the 1.2500s, but I will also happily take a shot at selling these runs if they keep going without seeing what I believe will be a nice short-term reversal. So be on the lookout for that in the sessions ahead. 

POSITIONS - As far as the current positions go, no updates on the SPX500 short as we are waiting for the break below 2320 to signal a bearish shift and still could see a run towards 2500 before that happens. AUDNZD is running in the money but hasn't accelerated just yet and I'm waiting for a push back above 1.0900 at a minimum to feel more confident about this one getting going and taking us back above some important resistance just over 1.1000. Finally, GOLD is running well but with this one, I'd like to see a close well above 1240 to really strengthen the prospect for that next meaningful higher low and a bullish trend resumption. Gold is a funny one. It always feels like the market is so hot blooded when it comes to opinions in the yellow metal. If you're a bull, bears think you're stupid and if you're a bear, bulls think you have no clue. So much animosity on both sides. Some believe GOLD to be an excellent hard asset diversifier, especially in times of uncertainty, while others believe the metal has no real value at all. Anyway, right now I'm the stupid guy on the bull side. Let's see how it plays out. 

Still waiting on $EURUSD and $GBPUSD to make that next move. Via @joelkruger

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