Intraday Market Thoughts

Archived IMT (2011.01.05)

by Ashraf Laidi
Jan 5, 2011 12:29

MANY HAVE THEIR OWN REASONS for why stocks may be facing a pullback soon. Readers of my website and my book Currency Trading & Intermarket Analysis are familiar with the use of the Gold/Oil Ratio and its inverse relationship with global equity indices. Weekly and daily technicals in the Gold/Oil ratio indicate a bottoming process, a pattern of which has triggered broad selloff in equities. I am expecting a pullback of 3-5% in the S&P500, revisiting the previous top at 1,230. This is likely to translate into an extended decline in EURUSD towards $1.3050 and a retreat in AUDUSD towards 0.9770. Tehnically speaking, none of the major equity indices show any notable arguments for a pullback. But the intermarket argument from the 2 major commodities suggest a selloff of at least 3-5% is overdue.


Latest IMTs