The Euro staged a strong rebound today after a poor finish to last week. A string of soft regional and Eurozone CPI reads started the Euro off on weak footing Friday. Further pressure was added on strong U.S. data that included Industrial Production, JOLTs Job Opening and Michigan Consumer Sentiment; the Euro finished the week at the lowest level since March 1.
Equity markets, led by the tech sector and FANG stocks, turned sharply lower overnight. The Nasdaq lost as much as 116 points and traded down 1.65% early this morning. Friday’s strong session was very technical in nature and the move was building up through week. When bearish news does not take a market lower, it can sometimes signal an adverse move is around the corner.
There is a lot on the plate for crude oil this week. Not only do we have the Fed meeting, we have the possibility of new sanctions on Russia and the potential pullback from the Iranian nuclear deal. This came against a backdrop of surging global demand for oil and related products.
Since the beginning of the month all battles between bulls and bears run in a fairly narrow area, which unfortunately doesn’t create good investment opportunities. In today's alert, we looked at the broader perspective of EUR/USD and the USD Index itself.
“Sell in May, then, go away,” some do say, but, in this instance, I assert one should sell in March-April and buyback in May-June on certain symbols. Because of some rare events on monthly charts, a few short trades may be the most remarkable trades of the summer or year. The euro, pound and soybeans (as of the time of this writing on Thursday, March 15, 2018) reached a drastic spread distance from the center point of and way above certain Bollinger Bands and a moving average