Goodbye April, Hello May – USD/JPY Hit Long Target

May 1st, 2009

Morning bearz! With April behind us now, let’s just take one sentence to re-cap what happened. In April, we moved SIDEWAYS! Okay, now on to May which we think will bring in some sellers and kick out these stubborn bullz for now. 875 and 885 on the S&P 500 will be the big road blocks today so watch those levels closely. Again, I want to point out this morning that the S&P intra-day targets I post every morning are very powerful for traders. Below, you can see that I was only 1 POINT off from the highs of the day – we hit 888 and the target was 889. Not bad huh folks? If you made a short trade when it hit the target resistance zone you could have made 2% in one move down.

 

spx

 

As for morning news, RIMM is trading higher as more people are advising everyone to buy up this stock. News flash – it’s already make it’s 100%+ move from the March lows and is now coming into some major Fib resistance. Looking at the chart below, if it gets to $75 that would be prime time shorting area back down to $60 or lower in the short term. In general this is a very clean looking trade for the beginning trader out there.

 

rimm

 

Taking a quick look at the USD/JPY which has successfully bounced off of my Fib target support area. I had mentioned about a two weeks ago that a great entry target for this pair was at Fib support around 96.00. Clearly the pair bounced right off the level as expectations for a US recovery are greater than those of a Japanese recovery in the the near futures. A very conservative trading target over the next month or so for this pair would be around 105.00.

 

jpy

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