Recommended books to read

1. A good year by Peter Mayle
2. Life Without Limits by Nick Vujivic
3. The seven spiritual laws of success by Deepak Chopra
4. The Big Short: Inside the doomsday machine by Michael Lewis
5. Trading in the zone by Mark Douglas
6. What I talk about when I talk about running by Haruki Murakami
7. Market Wizards by Jack Schwager
8. Technical analysis of the financial markets by John Murphy

EURUSD: Should see a retest of 1.3150. Sell now with stop at 1.3670

With Italian now in the same league as the Greeks, any reason why EURUSD is still trading above 1.35 right now. I think it should have a retest of the recent low at 1.3150. Therefore in the same breadth, i think selling EURUSD for a retest of 1.3150 could be lucrative. I will do so here with a stop loss of 1.3670.

S & 500: Selling should base at 1190-1200 near term

There could be a ST base at around 1190-1200 in the current selling. This is based on my weekly Ichimoku cloud support level. will post the chart when I have the chance again.

Sell AUD here to target 0.9920-1.0000

With no clear relief, any rally should be sold into which is happening now. I am taking a Short term short in AUD with a tight stop loss of near 1.0210 to target 0.9920-1.0000 over Friday.

S & P: Corrective wave B to the initial rally from 1073-1233. Buy near 1150-1175 for eventual 1265

Unless things change dramatically for the worst, I am of the opinion this is a mere corrective move to the nine day rally we have witnessed till last Friday. Wave A is 1073-1233, Wave B should retrace 38.2% to 50% of this rally bringing us down to support at 1175 and at very most 1155.

Once this level is reached, then we are on target to reach 1265 which will be high level target for Nov 2011.

AUD ST target hit at 1.0240

Sell AUD here for Short term trade against USD: Take profit at 1.0240, Stop loss at 1.0396 and above

The negative divergence on the MACD warns of pushing this pair higher. I am going for a ST trade to take advantage. Sell here to take profit at 1.0240 and stop loss above the current 50 day MA at around 1.0386 or so.

EURUSD: 1.3150 low to 1.3697 rally finished. Sell here to target 1.3450-86 first

The recovery rally off 1.3150, which was the base after breaking my 1.34 support, is over after hitting 1.3697 yesterday. ST sellers can sell here for a pulback towards 1.3450-1.3486

SPX: A tactical low at 1073 last week could well be important low for year end run

Early August, we first hit 1100 low on S & P 500. Yesterday, we hit 1074 intraday low which qualifies for a lower low.

Two evidences that point to possible important tactical low:

One:
Distance from 10 month MA in Mar 2008 = 197 points
Distance from 10 month MA at intraday low yesterday = 192.

Two:
More importantly, I compared the various market internals levels hit yesterday with Aug’s numbers. We have a 6 out of 7 showing bullish divergence signals. Means to say market breadth is not as bad as compared to Aug 1100 low. This is an important clue to suggest we may have hit the tactical low this quarter for my year end run?

EURUSD: Target 1.34 hit. Now heading towards 1.30

EURUSD has hit my target of 1.34. It is likely to break lower and test 1.30 before we see any significant rebound.

S & P 500: Mirrors early 2008. Will see a lower low in next two weeks, probably a 20% rally till end of the year

In 1st Q 2008, S & P 500 broke its 50 week moving average, tested the 200 week MA and range traded for 8-9 weeks and made a lower low before retracing 50% of the top to bottom move back to the 50 week moving average again. It was a decent 20% rally before we saw market tanked in 3Q 2008 to early 2009.

Right now, we have broken the 50 week MA and tested the 200 week MA. We have range traded for good 7 weeks. I suspect a lower low of 1040 will be made and then we may have a decent 20% rally till end of the year and upside is about 1250 (around current 50 week MA).

EUR: Haven't seen the low yet. Target 1.34 and perhaps even 1.30

yesterday saw an intraday low in EUR VS USD at 1.35. The rebound was quick off here. It has been flirting between 1.35 and 1.37 since then. It has been boosted by news of China potentially investing in Italian bonds and so on. However, I don't think the low is seen yet. I am targetting 1.34 from here and if things don't improve, don't rule out a 1.30 potentially.

SPX near term, bear flag consolidation, break 1140, target 1040

Gold: Frustration with no clear breakdown but seeing a series of lower tops

I am frustrated by the gold moves lately. It seems it is still not breaking down yet.
however, i am still comforted by the fact that it is showing a series of lower tops and so long it doesn't break and close above 1912-1923. Still a sell into rally. The move downwards could be explosive.

S & P 500: In downtrend and could target 1000

S & P 500 has broken the uptrend line drawn from Mar 2009 lows in late July/early August. First target of 1100 was hit and we saw a short term rally back up to 1220-1230.

Continued woes on US/European front has seen it come off. We could see a retest of 1100 first before 1000 which is a stronger support. At 1000, US Fed reserve may have to unveal QE3 to stem the fall.

We could get some insight from Obama's speech this Thursday (8th Sep 2011).

Gold Double top: Sell here to target 1700

My conviction comes from the waning momentum and as well as a outside day reversal yesterday. The last time it occurred was on 23rd Aug and we saw gold tumbled to 1700 from 1900. It could happen now and could well be a double top with ultimate objective at 1500.