February (WK4) Market Update

At the last meeting in Brussels, Greece has secured a four-month reprieve from eurozone creditors, including a flexible deal on the fiscal targets imposed by the IMF, and therefore dodging default and the potential rupture of monetary union.

This means that the market might settle down and get back to ‘business as usual’ until July when Greece must repay €6.7bn to the European Central Bank.

 

Apparently, the big players are still not happy with the outcome from the Eurozone meeting as the currency market is still stuck at the range for the last 3 weeks.

On the other hand, the stock market is really moving as almost all of the Indices are breaking new all time records:

 

FTSE – 6926

DAX – 11232

CAC – 4900

S&P – 2117

DOW – 18216

NASDAQ – 4460

Nikkei – 18695

 

Gold and Silver are still pushing the price lower despite some minor price action fighting it.

Best Trades this week

  1. EUR:GBP (4h Chart) – Continuation long on the 23rd – the overall downtrend and the pullback to the moving averages, along with the double inside bar was an aggressive yet ‘by the book’ trade that proved to be a profitable one. Currently at a +2,5% profit, it promises to become an even better one if the EUR weakness resumes and the GBP strength continues.

20150227_EURGBP_4h

  1. FTSE (4h Chart) – Continuation long on the 23rd – after a breakout of the resistance level at 6870, a retest of the level and the engulfing low test bar triggered us in to another successful trade. Now at a +1% profit it is still showing signals of continuation to the upside although it is recommended to protect the current trade as well as thinking about locking in some profits.

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EFFECT OF THE NEWS LOOKING FORWARD

After the postponing of the news that all traders were waiting for last week regarding the deadline for the Greek government, the market seems to be stuck in a never ending sleep. This Friday, all eyes and ears will be on the consumer and  inflation expectations from the US.

Next week several announcements going out but the major concerns will come from the European Central Bank press conference on Thursday and of course, the Non Farm Employment change in the US. This means that by Wednesday we should have all our positions secured and managed accordingly.

As for the Indices we now recommend an obvious attention to any open positions as the pullbacks will start occurring and potential new opportunities might be ahead. Keep in mind: risk management and common sense above all.

As mentioned last week, Gold is still bouncing off the trendline that might be the support to reignite the long trend. As price is also approaching the 1180 support level, it might prove to be the perfect mix for the reversal back to the trend.

20150227_GOLD_1d