Nov10 – Market Analysis

Equity Markets & General News

Strong NFP report on Friday.  Equity Markets resumed their rallies, although most European markets now have bearish weekly momentum.  Gold has been falling on the back of the US GDP report and US NFP report.  Now trading down to $1,280.

S3-FX

There were 8 pairs that had a change in weekly momentum at the end of last week.  Again, that’s a quarter of all the currency pairs!  Half of these were AUD pairs, and the momentum change was against the AUD in each instance.

There are 20 pairs that had a weekly momentum change in the last four weeks.  This indicates that a lot of the currency pairs are moving sideways.  The majority of the potential S3 setups continue to revolve around the NZD and CAD pairs. 

No S3 setups on any of the FX pairs, equities or gold.

STAM

Weekly Momentum update – have created another spreadsheet to record this more efficiently.  Momentum is shifting towards USD (7), CAD (5), JPY (5) and AUD(5).  The remaining pairs all have 3 points or less. 

In terms of STAM rating points – the big change is obviously EUR after they un-expectantly cut the interest rate slipping to 9 (from 14 just over a week ago).  The other changes are USD going to 7 on the back of strong employment report (Fri) and a strong advance GDP figure (Thu), which makes tapering more likely to occur earlier, thus strengthening the currency.  JPY and CHF have dropped back again – this is probably due to risk-on/risk-off variable.  With the strong numbers coming out, risk-on is more favourable.  The other mover is Sterling, moving from 9 to 12 points – I don’t have a clue why that is the case.

Thus we have in the strong camp: GBP 12 (moving up), USD 7 (moving up), NZD still on 11.  JPY and CAD are the weakest ranking pairs – however both are good from a weekly momentum perspective.

There are currently only a few currency pairs that have a S1 or S2 STAM setup.  Reviewed these – not interested in taking any of them.

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