Big news out tonight is the JP Morgan acquisition of Washington Mutual here in the U.S. , but for some reason Lindsay Lohan’s coming out of the closet announcement is still getting more hits on news sites. Are we at the point where we’re just getting used to this? No resolution yet on the bailout and the media has turned it into a feeding frenzy, bring clamor and noise to Congress when all we really need is action. Consumer confidence is getting worse and sill not seeing any signs of SPX recovery. Treasuries are rising. Risk aversion going on. We’re in consolidation. European markets are moving lower in early trading. Isn’t this all nice.
Expecting Yen crosses to move lower, unless some miraculous news concerning the bailout, which is unlikely. Option sentiment points lower. Some possible UJ entry levels are 106.30, 107.00, 107.20, or wherever a direct hit takes place on that big hourly diagonal trendline sloping downwards. EJ has entries at the 156.88-157.00 area, 157.76, and the 50% retracement, 158.50.
Again with a focus on risk and with commodities drifting along, possibly see a move lower on EUR, GBP, AUD, etc. as well but not afraid to buy bounces. 111-112 area is big resistance on crude. Again I’m sticking to my guns on the stronger dollar tendencies over the longhaul, but for now, consolidation of a few hundred pips is seen on these. New Zealand is now officially in recession as well, thought it would be good to point out. Option sentiment is generally mixed or looking at lower liquidity on these pairs tonight.
EUR has technical levels at 1.4540-45, 1.4460 area, 1.4372 is the 50% retracement, and there’s an upward sloping diagonal trendline to look out for, which could get a bounce.
For anyone that missed the article written by George Soros today on the bailout I thought it was an interesting read. You can find it here: http://www.ft.com/cms/s/0/9973c5b0-8a6d-11dd-a76a-0000779fd18c.html?nclick_check=1