Usd v Zar

Well, that trade seemed to work. Yikes, I hope others made some money on that one. It was a great trade. The Doji that formed four days ago was text book for the candle stick geeks. Then the pair moved 5000+ pips.

The Great Sideways

It looked like we were going to have a good up tick today, but the rise was not sustainable.

So again we sit and watch time pass. It will be interesting to see how long this will last. It could be the great sideways of the forth quarter. It might be early to call, no market at all, but it looks like this might be the story of the last quarter.

Look for lows to gain ownership.

Usd v Zar

For those interested in currencies.It is time again to go long the South African Rand, and sell the Usd.The best part about this trade, because it should be viewed with a long term perspective, is the interest rate that South Africa is currently set at.If you trade on a margin account, the interest rate provides an even better opportunity through leverage. According to my calculations, the Zar has room yet because accordingly through the 'fisher effect ' the Usd incomparison is still over valued.Take a look for yourself. It is still a rare chance to part take in some arbitrage.

Monday: oh so wrong.

Well Monday's prediction was off by a lot. That's the way the forecasting shouldn't work.... However, today we have seen some interesting market action. A sell off in the morning followed by a sharp increase to the positive side.

This leaves us still at an important level on the TSX. We haven't broken the resistance level yet, and we haven't made push higher (that would be yesterday's routing).

Is there opportunity with this chaos or lack there of? Yes, the down days provide a buying opportunity and the back and forth days provide a bottoming effect for the market to move further higher.

Monday opening prediction, TSX

So, Friday was a terrible day on the market. However, near the end of the day there was new buying. We are at a key support level and the market has been sideways for three days. Three times the sellers have tried to push through the the 10,750 level with no success. This level was a key resistance level on the way up; back in July and August. It has also been tested once and held. So to the prediction...Monday will be an up day. The tick won't be large and it will be sorted, but expect the current level to hold and look to buy on lows of the day.