10/7/2011

DAILY COMMENT
ECB slashes rates to new record low at 0.5%. Little surprise for us with current economic environment. Contracting economies with extreme high unemployment are very dangerous even for democracy in Europe. US markets had mixed day but overall positive tone from last week remains. Nasdaq is at 12 year high (buy and hold dream , but not our game !). Australian Dollar is under pressure breaking major support area as Australian economy having tough times due to slowdown in Asia and weak commodities prices. Macro theme: Asian Slowdown will persists for near future and Australian and other dependent economies will feel the heat from that story.

CURRENCY MARKETS
Lower lows and lower highs clearly downtrend here. Overall Large traders are nearly neutral last two weeks but I suspect that they are already short Australian dollar. Possible target for huge leg down is last year low as shown below. This trade promise to be very profitable in my opinion.

TREND ROOM RESEARCH AND TRADING Ltd. Sofia, Bulgaria http://trendroom.wordpress.com e-mail: trendroom@gmail.com, mobile: +359 887 932 839 May 7, 2013

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BONDS
This short bonds ETF broke very strongly last week in a wake of better than expected employment figures from US. Counter trend is in play with possible target on upside 200 DMA and next 64.50 area which was good support in March and April. EMA 20&50 is bearish suggesting that rally maybe short lived here.

TREND ROOM RESEARCH AND TRADING Ltd. Sofia, Bulgaria http://trendroom.wordpress.com e-mail: trendroom@gmail.com, mobile: +359 887 932 839 May 7, 2013

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INDEXES
Small caps index is on fire making new high for the year. Overall TF systems caught this trend back in December last year (EMA20&50). Indicators are still bullish as well as MA systems. Long until proven wrong.

TREND ROOM RESEARCH AND TRADING Ltd. Sofia, Bulgaria http://trendroom.wordpress.com e-mail: trendroom@gmail.com, mobile: +359 887 932 839 May 7, 2013

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STOCKS TO WATCH
Cree Inc. (CREE) Semiconductor stock making new high. Volumes are low in my opinion but overall looks bullish this stock for even higher prices from here. RSI is supportive. MACD is a bit messy but still bullish crossover here. Ride it until it stops moving.

TREND ROOM RESEARCH AND TRADING Ltd. Sofia, Bulgaria http://trendroom.wordpress.com e-mail: trendroom@gmail.com, mobile: +359 887 932 839 May 7, 2013

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Have a great day ahead.

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TREND ROOM RESEARCH AND TRADING Ltd. Sofia, Bulgaria http://trendroom.wordpress.com e-mail: trendroom@gmail.com, mobile: +359 887 932 839 May 7, 2013