General Commentary

To be very clear the trend modes of the various assets do not indicate whether one should be long or short currently, if an asset is in an uptrend it does not mean one should be long but it does mean that one should definitely not be short on a swing trade or intermediate trading basis. In a range trading mode, the side lines are your best bet.

What we are looking at currently is a down trend in the EURO / USD, a range trading mode in the precious metals and the indexes making new intermediate highs and uptrending.

The precious metals have had a strong correlation with the "risk-on trade recently" it seems that risk-on is pulling the precious metals up with the stock indexes and the EURO-USD is pulling them down resulting in a range trading mode for the precious metals.

This week, the Euro rolled over and burst down with volatility expanding signalling the sideways trading in the euro was likely over and the down trending mode was ready to get going again. The risk-on trade in the market recently has done very little to move the EURO higher against the USD. Could the EURO/USD be signalling risk-off is back? Is the failure of EURO/USD and EURO/JPY to rally and precious metals not making new highs be a major non-confirmation for the market? I dont know.

Maybe the Stock Indexes are in for a breather / sideways or moderate down price action while EURO USD heads south?

As always this site is a hobby and is for illustrative purposes only. Nothing on this site should be viewed as advice or a recommendation to buy or sell any securities. Please consult your investment advisor before making any decisions.