Cable Breaks Out on PMI Report, DX Drop.
Monday, August 03, 2009
by Bob Kozak of C3I Capital Management, LLC
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British Pound (BPU9): Cable opened higher at 1.6850 after a better than expected Purchasing Managers Index rose to a 16 month High of 50.8 vs previous month of 47.4. With equity markets higher, traders rotated out of the DX, sending Cable to a mid-day Hi of 1.6986, before trailing lower into the close of 1.6919, up 232 tics. Optimisim could continue to weigh on the DX, but with a BOE rate meeting on Thursday, cautious longs should tighten 'stops' or buy 'puts' to reduce exposure. The s/t trend remains 'positive' w/expensive momentum indicators. A higher open should find Resistance at 1.7039 and 1.7158, while an open below 1.6866 may find Support at 1.6747 and 1.6574.
Recent articles from this author
- Dollar 'Pauses' Ahead of FOMC Results. - Tuesday, August 11, 2009
- Cable Breaks Out on PMI Report, DX Drop. - Monday, August 03, 2009
- Sterling 'Shines' As Housing & Stocks Prices Increase. - Thursday, July 30, 2009
- Chinese Equity Correction Sparks Flight to Quality in DX. - Wednesday, July 29, 2009
- Canadian Sets New High for 2009. - Monday, July 27, 2009
About the author
Bob Kozak, Currency Futures Analyst
C3I Capital Management, LLC Bob Kozak is the Senior Currency Futures Analyst and Managing Principal at C3I Capital Management, LLC. He has been involved in the financial markets since 1978, when he was recruited as portfolio strategist for a major Wall Street firm. With a degree in Mathematics from the University of Massachusetts, he was drawn towards technical analysis. He moved into the retail sector as a Certified Financial Planner, assisting clients in structuring an investment portfolio suitable for their particular needs, emphasizing income and risk management. A unique opportunity to mentor under a former Chairman of the Chicago Board of Trade enticed Bob into the commodities arena. Bob eventually managed the office of his mentor, before the firm was purchased and relocated to Chicago. Bob follows most futures markets using primarily Technical Analysis, and takes advantage of the strong correlation between the U.S. Dollar Index and those futures purchased in Dollars. You can request a FREE 2-week trial subscription of PROBABLE DAILY & WEEKLY TRADING RANGES by calling Bob at (561) 674-0014 or email at bkozak@C3ICapital.com Bob has been a frequent contributor to many national publications, including Futures Magazine, Dow Jones Newswire, and Bloomberg FX -TV.
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