Sunday, November 28, 2010

11/28/10 [EDIT: Option 1c Added Below]

[EDIT: Option 1c Added Below]

Here a just a few options I'm watching as the week starts.

It should be noted that the dollar futures, weekly, ended on a bullish MACD cross last week. The wave 4 of a new impulse down was ruled out once 80.17 was crossed.

Should the inverse relationship of the dollar to equities continue, then this may support the minute [b] triangle option below. Should the dollar and equities rally in tandem, options 1a and b may provide some guidance as to how this will occur.




I like option 1c. It plays off the first five waves up off minute [a] and would fool pattern followers who think a bearish flag is forming. Will definitely keep an eye on this one.



It is possible the dollar may be in corrective mode going up. Here I have labeled it as an abc bounce but may also label it 1-2-3. The corrective option implies that this may be an X wave bounce. We shall see though since there is a weekly bull cross and a potential inverted head and shoulders formation potentially setting up.
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