The EURO might be hitting a major resistance trendline. This may pose severe downward pressure on the currency amid US weakness on Friday. Selling pressure may cause the EURO to drop to 1.27 for a 300 pips drop.
What does this mean for the stock market? USD strength = Bearish for the market. The correlation is about -0.7
Metal prices will drop when the USD gains strength. This will cause metal stocks to drop if this scenario works out. Again this is just a prediction, not a 100% sure thing.
What’s the trade?
Short the market
OR
Go long on the next pullback.
Suggested BUY orders
AA - $10.6
BAC - $12.8
CLF - $57
FCX - $75
LVS -$28
SNDK - $30
MGM $9
WYNN $85
Happy Trading. Suggest a trade by leaving a comment.
No comments:
Post a Comment