The Fate Of The USD

So as we all know the FOMC will be meeting again to announce their almighty important notes and we traders need to be on out toes. I want to take the time to go over some of the most important currency pairs during these hours of waiting. In This report we'll cover the most traded USD pairs available, EURUSD GBPUSD, USDCAD, USDJPY, and AUDUSD.
GBPUSD: This pair has taken a turn towards the stars and looks like it could be reversing its current downtrend. Since July this pair has been steadily drifting lower and lower and reached a yearly low of 1.60000 which acted as support for some congested trading going back to...get this...October of last year...and also the 50% Fibonacci retracement price. On the daily chart below we can see the confluence in color.

After the first test of the low the pair sprang back up to 1.64000 where it was rejected and once again fell to and then below 1.60000 before is was pressed back up to 1.61585. On the hourly chart below we can get a closer look at how this pair has been performing with this weeks movements highlighted in blue. From 1.60000 the pair took a steady path up and actually rose above its resistance before it was pressed back below it. This tells me that the traders want prices above this and their only preparing the situation strategically; so should you. 

I would be looking to sell this pair from 1.61585 and buy it at 1.60000 keeping a close eye on it just in case the banks want to take the price a step lower to the 61.8% Fibonacci at 1.57000, another great place to buy. 

EURUSD: This Pair looks like a little more fun. It has taken its drop step by step, almost in perfect lock step formation as far as the 240min chart shows. We can see from the chart below that this pair has found some good support around 1.25500. From There it has been on a consistent march back up towards the 61.8% Fibonacci level it broke about a week and a half ago. It was rejected back down from there and ended up being supported just at 1.26650 which also acted as resistance on the way down. It's good to see the bank traders are respecting technical levels. 

I'd be looking to buy this pair from or near 1.26650 with some bias to the downside so watch your position with caution as this pair has been known to be hella volatile. 

USDCAD: Is a completely different beast. This pair has seen some serious congestion where traders are sending the price flying and falling all within 1 or 2 sessions. On a 60min chart we can observe that this pair is still being supported by its original up trend support line but it does look to be losing some steam as far as the bulls are concerned. Around 1.11600 would be the level I'd sell from IF I was going to make any trade. I don't see much more upside potential in this pair and I don't think the banks are ready to lower it out of its uptrend just yet (think manipulation) 

AUDUSD: Is another pair which looks to be turning its tides from being a seller to being a buyer. Over the past week we've seen the price hit its most recent lows only to pick up Monday with nothing but buyer behind it. Though this pair has been seriously volatile we can clearly see its upswing and potential for more bullish moves. Price us testing near term support around .87500 where we could see the price bounce and continue its uptrend. I want to see .88800 cleared before I step in for a buy only because of this pair history of volatility especially during odd hours. 

 And last but not least,

USDJPY: This pair reached awesome new highs and then....nothing. It's been so lackluster I wouldn't even suggest a trade if you're not already in a successful position already. If you are in a position I hope it's a long position and I would only suggest buying more while you have a chance before the hike towards 115.000 which probably won't take long considering all the stalling that's going on in the pair now. Below on a 60min chart we can see the consolidated trading of this pair. 

After The ECB

Last week we had one of those important ECB announcements. Let's go over what happened to all the relevant instruments this week. The market has been very interesting. [EURUSD, EURJPY, EURGBP, EURAUD, EURCAD]
EURUSD: Highlighted in blue we can see the movement of this pair throughout this entire week (Beginning 10/5) Its clear that this pair has bounced off the weekly 76.4% Fibonacci Retracement level and got back up to its 61.8% where it was rejected...so far. On the 240min chart we can see that the price has back to its most immediate support level at 1.26650. I see this pair moving higher prior to the FOMC announcements.

EURCAD: Has taken a similar route. On the 60min chart below we can see that this pair has journeyed above 1.41245 which actually has been great support for yesterday's trading and today's as well. I would treat this pair just as I would its big cousin EURUSD. Buy at support levels until FOMC announcement get nearer. 

EURGBP: Has elevated itself from its lows and is now above the pivotal .78277 level where it found support. Monday the price bounced off this price and found its way up to make new 2 weeks high around .79000. I would consider this a cautious buy because generally speaking this pair is a seller. but for now look for bouncing opportunities. On the 60min chart below highlighted in blue we can see this uptrend and the dynamics of how .78277 has been traded around, below and over. 

EURAUD: There was no point in highlighting this pair's weekly route because its in an obvious range. Yesterday gave us some hope of a breakout but it was rejected so harshly that I could hear the retail traders cries from New York to Australia. From a range low of 1.43440 to the range's high of 1.44500 there has been quite a bit on congestion. In my opinion I don't think this pair is worth trying to trade at this point. I would wait for the pair to clear 1.44500 before I reach in for a buy. 

Last but not least...

EURJPY: Also in a range but Japanese Traders are known to be a bit more methodical with they way they go about achieving prices. On Tuesday (10/6) we saw this pair reach its lowest of lows and the very next day (10/7) it reached a weekly high at 137.938. Today we saw the price collapse back down to the lows around the 136.500 level. From here I see more congestion but not before we get a chance to buy. I would be looking to buy this pair at 136.000 because Japanese Traders love their price targets and they don't like to waste time getting there. If this pair isn't reaching for new heights it's most likely looking for a particular low. Save yourself 50pips and a day of stress and wait for them to send the price to 136.000 tonight. 

Most Watched Stocks In The Market

This is an analysis on some of the most watched stocks in the U.S. Equity Markets today. You StockTwits kids should love this. I want you all to observe the gaps and trends which could make you a lot of money over the next few days: IF you trade them correctly.
To Start this report off we have SodaStream International Ltd. (SODA): Maker of the machine which gives consumers the ability to make their own soda at home.
From a technical perspective this stock is a bit unappealing other than the fact that it's in a downtrend. The gap that occurred after the weekend didn't excite me. That Just tells me that the market will be retracing soon to take those prices back and who knows when some hedge fund's limit order will be hit. I'd wait until price comes back towards the top of the gap around 27.50 for a short. From there I'd look for a target around 22.60 (bottom of the gap). Below Is a 15min chart which shows us The area which needs to be filled (in blue) and the consolidated trading from yesterday which rolled over into more falling today.

Next up we can take a look at Yum Brands Inc. (YUM) which is a beverage and fast food conglomerate. We see from the 60min chart below that this pair has been dominated by serious traders. Retail kids are getting crushed no doubt. It has ranged in a gap it created back in July of this year. It made some false breakouts and breakdowns the whole way through and currently the price has fallen out of the range.

The chart above gives us a chance to see the falling RSI which is an indicator that the price is ready for some rest. Now on a 15min chart we can see that this pair was seriously congested yesterday (highlighted in lighter blue) and today it whipped the shit out of the retail traders by making a dramatic spike and crashing back down severely. Around 71.15 is the bottom of the gap and the price has been rejected back below it today. That's the area you should be looking to short this stock. 

Let's move right along to Sunesis Pharmaceuticals (SNSS):

Another stock that has gaped down. This company has seen a horrible situation since Monday because it fell more than 50% in value since then. Around 3.85 is the closes resistance for this instrument and it doesn't look like it'll be back to it any time soon. On a 240min chart we can see the price fall heavily and the heavy selling since. 

On a 15min chart we can see the stocks daunting task of recovering towards any price of sustainability which is around 2.00 but it'll have to reach that then sky rocket nearly 100% just to get to the bottom of the gap its created(Highlighted in blue). 

Technically I'd sell all day.

Cree Inc. (CREE) is an LED manufacturer and makes semiconductor products for power and radio-frequency applications. This stock has a couple of gaps it needs to fill and I'm just waiting for the market to come along and sweep up every short trader's money when it does lol. The first gap runs back to August of this year when the price fell a little over $3/share to around 46.00. That gap was never filled. The second gap came recently around the 1st of this month when the price fell from around 39.50 to around 35.90. This gap was never filled either. The 60min chart below tells the story. 

To be honest I only see a sell from what seems to be near term resistance (33.40) but be cautious for the bounce that is to come. And when it comes don't be hard headed. Shoot for the gap fills, you know the markets will punish you for being a rogue trader and thinking trends last forever. The 15min chart below helps us see a more immediate opportunity. 

The first gap to be filled will be gap #2 where it'll probably range between its extremes then on to gap #1 where it'll most like go straight for the top of the gap. 

Last but not least we have Lakeland Industries Inc. (LAKE) who manufactures & sells safety garments & accessories. This stock has been fun recently. It has recently broken to important resistance levels and has risen well above its bullish trendline. The first resistance level was broken at around 8.00 and from there the price elevated to around 9.78 where it broke though yesterday and met some heavy resistance which we can observe from out 60min chart below.

 This gave me the idea to buy but then I kept going with my analysis. I observed that the reversal candle was a bit bearish and a bit engulfing lol. So then I considered the RSI...It was bearishly diverging from what the price was doing. On The 15min chart below we can see the divergence much clearer and we can also see the near term support we are testing today: If this doesn't hold I'm looking at a sell from around 9.83 back down to 9.00 then 8.00 if that doesn't hold. 

Buy Weed

In the wake of Colorado and Washington legalizing Marijuana for recreational use you're out-dated and crazy if you think there's no money or future for the Cannabis Industry. You're also crazy to ignore Peyton Manning telling us he's benefited from legal Pot Business and an Alaskan News reporter quitting on air with a hint at her conversion to the Weed business. To show you all what I mean when I say this blog is the New Generation of Finance I'm going to write a short report on 3 cannabis stocks that could work for any investor and their strategy. Whether you're a day trader, swing trader, or equity investor these stocks will work for you.
Consistency- If you're looking for a consistent stock that could earn you a healthy profit I would look towards a business with a product, service, and outlet for their business. MedBox (MDBX) is a great example of this kind of company because they make automated dispensing solutions for medications, including marijuana. So if it makes you feel any better their sole business is not cannabis alone. They also have the largest capitalization of all cannabis linked stocks with a $1.2 billion capitalization and does not file with the SEC. Below is a chart which shows a cycle of slow slow sell offs lasting months with the strongest support of any instrument I've ever seen and it looks as if this is what happens year after year.

Volatility- If you're interested in some action on a weekly basis I would look towards GW Pharma (GWPRF), one of the few cannabis stocks that trades on a major exchange (Nasdaq). This company is based in the UK and is biotech. They develop cannabinoid medications primarily for multiple sclerosis and cancer. They too have one of the largest market caps at $930 million. The daily chart below shows me this stock has been supported and respected in the markets. Since its IPO it has not turned around and has only elevated.

At closer examination on the 60 min chart below we clearly see the fun part of this story. The pair creates predictable and trade-able GAPS!! This might seem scary but you must look at the bigger picture. An uptrend since inception.

Value- Our value cannabis stock of the day is a company by the name of mCig (MCIG). They create an interesting product which is a $10 mini-vaporizer for dry Cannabis or Cannabis Wax. The best part about this company is that they didn't release their first generation of products until October of this year and from the daily chart below we clearly see how the markets have responded. In my opinion this stock is an excellent value. The company is just getting started, has a good product that it actually sells, its stock price exploded but is giving investors an opportunity to jump in where we see the price come back to its long term resistance level that seems to be acting as support. From these levels you're looking at growth that could be passed down to the generation Y's in your family.