Good Morning,

Overnight (for me), China PMi data was poor and overall the EUR PMi data was better than expected.

I think that it is now 7 days on the bounce that the S&amp;P has climbed off the lows. In the past two weeks or so the S&amp;P has fallen 80 points and then risen back 75 points. These swings in the S&amp;P are not normal, I think more and more traders will soon be side lining themselves. Equity traders will be getting long, then getting shaken out , then getting short and then shaken out once again....we seem to be exploding down then up taking out traders at either end. False breakouts and false breakdowns are just ways of telling us that we are at huge inflection points but sooner or later we will break one way or the other. In the interim traders will get more and more bored without having a direction and losing capital they will exit, or be forced to exit through liquidation. I really hope that we make the true move soon, I am getting as frustrated as everyone else with the chop fest.

The EUR/AUD long triggered on price at 1.4850 last night. I think the RBA  following poor AUD data will have shelved any ideas they had of  applying a rate increase. This in my opinion marks a change in the fortunes of the AUD currency and I see the AUD/USD returning to move lower towards 0.8500 once again. Watch the EUR/AUD and GBP/AUD.

The EUR/AUD long  triggered.

I have amended the entry levels on RT66 the AUD/USD short RADAR TRADE that I posted on the 22nd April 2014.
Entry now at 0.9310
Stop Loss 0.9390
Limit 0.8500

Watch the USD/JPY. (yes, Yang, I have all the other JPY short trade levels still in my back pocket).
Of the S&amp;P retracement over the past 7 days the S&amp;P retraced about 80%, whilst the USD/JPY only managed 50%. Should equities now turn lower after such a move higher the USD/JPY will be under pressure given its failure to rally. Should this happen the level of 101.00 will be key support.

Looking for the SEK and CAD trades to move higher today......

I will tweet anything that interests me as it happens.

Good Luck and trade safe. Its still choppy out there.

Scott

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