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An Interesting Currency Development

Mar 10, 2010 Market Analysis Comments

The Shelton Letter

A rather interesting development occurs in the currency market, as our favorite pairs, the EUR, AUD, and GBP (against US dollars), trade in what one could deem separate directions. Don’t get me wrong, this parity remains intact on the behalf of the weekly timeframe, especially between the EUR and GBP. (Charts Above) The AUD, who attempted to make impulse waves lower like the EUR and GBP, failed, and now gives reason to believe it will continue higher. The unusual price action I am currently referring to can be seen best on the daily charts. One analyzing the EUR would see continued range trade that started with the lows of February 18^th; these lows will be broken the next time they are approached. If you were to take a look at the GBP, one would be looking at impulse waves to the downside without consolidation similar to that seen in the EUR. Just as the AUD differs on the weekly, it does on the daily while it attempts to make new highs.

China’s exports rose more than forecasted in February. This is the third straight month these figures have surprised to the upside; increasing pressure on policy makes to reduce stimulus aid. This rapid increase in exports is also expected to add to inflationary pressures. Government figures released tomorrow will give more guidance on this issue. It is worth noting that expectations show inflationary pressure within China, will be around 16 month highs. Crude trades higher and Asian markets are lower on this news, as market participants fear a central bank tightening.

A political issue that we believe will impact financial markets quite significantly in the near future, that being healthcare reform, is not expected to meet its March 18^th deadline. The deadline was set by Robert Gibbs, White House Spokesman, those in favor of reform claim the deadline is irrelevant and the plan can still be passed. We shall see only with time.

Dubai World meet with creditors earlier this week and proposed a debt restructuring that would allow debtors to receive their principal investments without a haircut. This is an optimistic element to the global recovery as many feared months ago, that this entity would collapse.

Romano Prodi, the European Commission President, claims that the worst of Greece’s financial crisis is over and there will not be similar issues arising in other European Nations. I am inclined to remain suspicious as small spending cuts do not fix large budget deficits.

http://multipletimeframeanalysis.com/

Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the Shelton Letter that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Markets Trade, But Quietly

Mar 9, 2010 Market Analysis Comments

The Shelton Letter

Let us start our discussion this morning, noting the rather lackluster beginning to the week. This can be attributed to two things; price is squaring itself off with time and the lack of key economic figures. The former statement is in reference to two markets, the S&P and the U.S. Dollar (USD). Both markets have had extreme moves in their respective direction and are “cooling” down, if you will. As we noted yesterday, we are bullish on the S&P. In terms of length, expect the next bullish wave to last 120-135 days, unless there is rapid accumulation within the first 49 days. If this is the case, the market has exhausted itself and lower prices will soon follow, correcting half of the move from last years March lows to the high prices created on the 49th day. If you measure from the Swing low of Feb. 5th 2010, we have already experienced 20 days of rapid accumulation, 29 (give or take a few) days more of similar trade will call for bearish sentiment. This will be assessed when the time comes. I say once more as of now we are bullish while this last correction was not able to overbalance, in terms of time, the previous correction that took place from Jun 10 2009 – July 08 2009. Although we did exceed that correction in terms of price, time is more valuable and one should trade accordingly. If we fail to break above the 1150 level, which is highly unlikely as we have traded against it 3 times already and the 4th time almost always goes through, one should be bearish when the S&P closes under 1112.

Let us speak of George Papandreou, the Greek Prime Minister. This is appropriate as budget deficits of his nation have been quite concerning in recent months. The latest development with Captain George is his request to Barack Obama to help “combat unprincipled speculators”, who are responsible for the global financial crisis. These accusations are rather comical as those “unprincipled speculators” provided his nation with a means of manipulating the true status of their economic well being, which in fact was not well by any means!

Japan is enjoying positive economics and a strengthening yen as the majority of the nations companies recorded profits before the fiscal year end. One of the weakest currencies against the yen is the GBP, which shows continuation in its bearish trend.

Today US markets will experience treasury auctions, other than that, nothing to important.

http://multipletimeframeanalysis.com/

Jshelton31@gmail.com

Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the Shelton Letter that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Mid-Day Bullish Stock Chart Watch List

Mar 8, 2010 Bullish Stock Charts Comments

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AMEX STOCKS: CMFO

CMFO:

ANO:

NASDAQ LISTED STOCKS:

IFLG

ZAGG

CPSL

HTCH

MPEL

NYSE LISTED STOCKS:

MPG

BBX

NCT:

OTCBB:

CHGI, SCLX, EMAN, CNOA, ESPH

Small Cap Stock Picks:How we Banked +18% on ESPH.OB in a Few Days And Plan on Buying Again

Mar 4, 2010 Bullish Stock Charts, Small Cap Stock Picks Comments

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Small Cap Stock Pick: ESPH.OB

ESPH.OB has an awesome chart set up here when looking back 2 years theres some strong resistance that formed in the mid .70’s region. Over the past month or so price formed an beautiful ascending triangle that broke out early this week where we bought a position in @ .83. Price peaked today near $1 where we took 1/2 profits @ .975 for a solid gain. I think there still is much upside potential here in this stock and I’m looking to add to my original core position if we get the chance to on any dip that occurs. preferably in the mid .80’s or on a pullback to the 13ema.

In January ESPH.OB reported record earnings and revenue

• Ecosphere Technologies Issues Letter to Shareholders and Reports Record Operating Revenue for Its Fourth Quarter of 2009Marketwire(Tue, Jan 12)

Technical Analysis Bullish Stock Chart:

Bullish Stock Chart Breakout 3/2/10

Mar 2, 2010 Bullish Stock Charts Comments

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MSN

MDF

THM

MERC

SEED

ADLR

YUII

INSM

INFN

NPSP

GIGM

Bullish Stock Charts on the Block

Mar 1, 2010 Bullish Stock Charts Comments

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AEZ – ascending triangle breakout . Lacking strong volume on the break

HALO – big move today breaking that strong resistance area around 6.40

XTXI and XTEX: Bother breaking out to new highs above resistance on increased volume. Strong bullish trends here

INSP: Broke recent channel – resistance near 12

MPEL – great looking bottom triangle formation and strong move on volume today. Upside potential indeed

ARIA – nice resistance breakout today but still has resistance right above here as well

INCY – Strong ascending triangle breakout

OSUR – Breaking to new highs above resistance

FALC – Solid bottom formed and broke resistance today. Could see continuation from here