Market Summary with Mike Seery - U.S. Dollar and 10 Year Notes Futures

The U.S dollar is trading far above its 20 and 100 day moving average telling you that the trend is higher and if you took the original recommendation back when the breakout occurred on July 25th at 81.20 continue to place your stop at the 10 day low which currently stands at 84.00 as there has not been a 2 week low since late July and that just shows you how strong this market has been to the upside as the dollar is being seen as a flight to quality as there are so many problems in Europe currently as money is flowing back into the U.S dollar.

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The Euro currency continues to slide along with the Japanese yen as the U.S dollar hit a 2 year high and I do think prices are headed higher as the chart structure will improve dramatically next week so continue to play this to the upside and if you’re lucky enough take advantage of prices dip making sure you place the proper stop loss but the trend clearly is higher as the question remains how low will the Euro currency go.
TREND: HIGHER
CHART STRUCTURE: IMPROVING

10 Year Note Futures

The 10 year note has rallied this week due to all of the problems geopolitically speaking pushing prices to a 2 week high as I was recommending a short position when prices hit a 4 week low getting stopped out in yesterday’s trade as the yield has hit 2.52% so currently I’m sitting on the sidelines waiting for another trend to develop. This trade was a small loser as prices grinded higher over the last couple of days to sit on the sidelines and wait for another trend to develop as I still do believe interest rates are headed higher in this country but with worldwide problems and interest rates at all-time lows in Europe this trade will take patience and time to develop.

The GDP report stated that the economy grew at 4.6% which is very solid and that’s putting pressure on the 10 year note this Friday afternoon, however as a trader you must have an exit strategy and my exit strategy is when I’m short and the market hits the 10 day high it’s time to move on so I’m out of this trade but I do think that there will be another opportunity relatively soon. TREND: NEUTRAL CHART STRUCTURE: IMPROVING

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