Appetite Cools off after 14% Gain

Markets taking a breather after the S&P500 staged a 14% increase in 7 sessions, peaking at the 1220 level, well above the 55 DMA but below the 100 DMA of 1238. The same applies for the Dow-30, which held at 11625, about 100 pts below its own 100 dma. The retreat in risk assets has been broad, with the euro losing a full cent after topping out at the 59% retracement of the decline from the Aug high. The technical dynamics of the 6% rally in EURUSD remain robust, with prelim support standing at 1.3680, followed by 1.3595. We have been unable to bring you the Premium trades as early as I we said we would due to travel constraints. We will bring those to you later this evening, around the NY close. Meanwhile, todays market action has triggered yesterdays Premium trades into action (after they had remained unfilled yesterday). These are the 2 longs in EURJPY and the one long in EURUSD. Watch out for a Fitch downgrade of UK banks. These rumours were first circulated by Sky News, but it appears that the action could be announced after the London close. The DIRECT link to those Premium trades is here: http://ashraflaidi.com/products/sub01/access/?a=519 To become a subscriber, click here: http://ashraflaidi.com/products/sub01/

Ashraf Laidi