Sentiment Squarely Shifts from Selling Rallies to Buying Dips

Tuesday, December 16, 7 PM - Las Vegas - John Netto - President ... Per the Sunday night blog which outlined the point of control for the market coming into this week, today's robust price action reaffirms the bullish sentiment in a number of major crosses, commodity related currencies, and underlying commodities. Trading the FOMC announcement today there was a period of digestion as the market collectively mulled over what the Fed rhetoric meant and how to trade it. For the rest of the week, the strategy is about where to strategically position oneself to buy the pullbacks as the deleveraging sentiment so prevalent in September and October has clearly turned. EURUSD - 134.00, while some 700 pips away is the area that represents the line of demarcation on the daily chart, while tomorrow's trading should give a great buy point if we pullback to 13877. USDJPY - This cross has been marching to the beat of its own drummer the last few weeks and appears perilously close of challenging the overnight highs and any action below 9027 is a spot to offer into the bounces. AUDUSD - With the 70 handle acting as such a huge overhang, I wouldn't be surprised to see a pullback down to the 68 handle where the Aussie consolidates before trying to launch higher. Gold (GC G9) - The Feb gold contract will find some firm bids tomorrow near the 834 level and I will be bidding into a pullback in here and scalping the respective reaction bounces I anticipate seeing from this level. I encourage everyone to log in Thursday of this week to Live Hedge Fund Trading Tactics where I will be trading a basket of currencies, futures, and options live in real time. Good luck in the markets. . . . (to read the remainder of this article, please log in below.)