Daily Form November 9, 2010

Inter-market Technical Analysis using algorithmic pattern detection

TUESDAY NOVEMBER 9, 2010       11:09:00 GMT

While writing this commentary on Tuesday morning (GMT) spot gold has surged above $1420 and silver is approaching the $28.50 level. Coincidentally there is a coordinated movement in FX trading with USD/JPY weakening along with USD/CHF.

The 240 minute chart for the US dollar against the Swiss Franc shows a violation of trend line and a break down from a bear flag formation which points towards a re-test of the low from October 14th below 0.95.

Here again is the comment from yesterday’s column on EUR/CHF.

EUR/CHF is showing more signs of weakness and a potential break down, as anticipated in Friday’s commentary, and I would be looking for further declines over the next few sessions.

The target, below 1.33 is indicated on the 240 minute chart below.

Last week I suggested a long position in 7 year US Treasuries, available via the exchange traded fund IEF, and a matching short trade in EDV, which represents longer duration UST’s.
The spread trade has continued to produce positive returns and the EDV chart shows considerable scope for further decline in the longer term.

On the 240 minute chart, GBP/CAD shows that the violation of the trend line and cloud formation discussed here yesterday is looking more probable.
The lower low registered during the last 24 hours is highlighted in yellow.


The patterns identified below should be considered as indicative of eventual price direction in forthcoming trading sessions.
None of these setups should be seen as specifically opportune for the current trading session.
For a more comprehensive listing of price formations detected by our pattern recognition algorithms please visit TradeWithForm

ERES  eResearch Technology Inc  

Yesterday's comment on ERES could have produced a 5% return from selling the stock on the open and covering on the close

There are not many individual equities that I would be considering on the short side, but the chart for ERES looks vulnerable to further selling.

Revealing my occasional tendency toward blatant and shameless self promotion if, as a reader, you have found such recommendations as ERES, EURCHF and others, profitable there is always a way of expressing appreciation via Twitter and a reference to the Daily Form commentary.