Monday, October 26, 2009

Currency and stock market gyrations

For those of you who happen to follow the markets every day, the last few sessions have been extremely odd.  I have some non equity concurrent indicators I follow and they suddenly stopped working about 3 sessions ago.  I don't day trade so I haven't been whipsawed in my personal or clients' accounts, but the action in the market has taken on a different tone in the last few days. 

Today the market was up nearly 1+% and then down nearly 1+% within an hour and in the currency markets the dollar is stronger against most major currencies.  Here's some pretty pictures to show what I mean.  For the Canadian dollar and Yen, up is a stronger dollar.  For the Euro and Australian Dollar, down is a stronger dollar.  (Look at the fraction symbol and you'll figure it out)

These are all hourly charts from

Australian dollar is has punched through all 3 moving averages: The 20, 50, and 200

Canadian dollar has been in an downtrend for a few days.

Euro getting whacked today?  It also just moved through the 200 hour moving average.

Like the Canadian dollar, the Yen has been weakening for several days.

These are only hourly charts but it does show 'something happening' and a possible change in direction for the dollar.  Will the dollar actually change direction or is this all one big head fake to sucker in the dollar bulls? 
Don't know but get out your popcorn and watch the show.

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