BUY NCOC $2.07
SHORT USD/CAD
Markets started the day off strong but gave up some ground at the end of day. Its a real battle now between the bulls and the bears. As I mentioned yesterday, many asset classes are very close to their 200 day moving average, which has historically acted as strong resistance to markets moving higher.
I'm paying close attention the Nasdaq and Russel 2000 because I have been trading lots of small cap tech stocks. Solid resistance above both right indices right now, which makes me think the upside is limited from here and we are either going to trade sideways or down. I have all long positions and no short exposure right now, but I may consider 1) shorting some stocks that have really rallied off the low and are way above their upward trendline and due for a pull back 2) reduce some of my long positions and raise some cash and wait for opportunities or 3) buy some ETF's that are short the broader market.
The US$ has taken quite the beating since early March. I was short the US$ before and made some small profits but took off that trade a few weeks back. The double bottom has been broken on the chart and the US$ should freefall from here, unless it recovers in the next few sessions. Important to watch oil too as the rally in oil has really driven our petrocurrency higher. I think the US$ is only going to weaken here and as that happens, commodities will further lead this market higher as it becomes cheaper to buy those assets. I'm going short the US$ and should the dollar weaken further, I will continue to add to this glorious position.
SHORT USD/CAD
Markets started the day off strong but gave up some ground at the end of day. Its a real battle now between the bulls and the bears. As I mentioned yesterday, many asset classes are very close to their 200 day moving average, which has historically acted as strong resistance to markets moving higher.
I'm paying close attention the Nasdaq and Russel 2000 because I have been trading lots of small cap tech stocks. Solid resistance above both right indices right now, which makes me think the upside is limited from here and we are either going to trade sideways or down. I have all long positions and no short exposure right now, but I may consider 1) shorting some stocks that have really rallied off the low and are way above their upward trendline and due for a pull back 2) reduce some of my long positions and raise some cash and wait for opportunities or 3) buy some ETF's that are short the broader market.
The US$ has taken quite the beating since early March. I was short the US$ before and made some small profits but took off that trade a few weeks back. The double bottom has been broken on the chart and the US$ should freefall from here, unless it recovers in the next few sessions. Important to watch oil too as the rally in oil has really driven our petrocurrency higher. I think the US$ is only going to weaken here and as that happens, commodities will further lead this market higher as it becomes cheaper to buy those assets. I'm going short the US$ and should the dollar weaken further, I will continue to add to this glorious position.
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