This Week in the Markets Jan 10- 15, 2016

This Week in the Markets Jan 10- 15, 2016

Ok fellow traders we have a new and bright week forming in the markets. Lots of negative sentiment and lots of Guru's sure that we are headed for a major crash in the markets. When? Well who knows really. Some time over the next six years. Really? So how much money do you have on the line? Oh I don't trade my recommendations. Really? Then why speak at all.
    Well I for one do not think that we are headed to hell in a hand basket at all. At least not in the stock markets.
Yes China is unravelling a bit but far from a catastrophe yet.
    Anyway lets not even go there as I would rather simply look at the opportunities available to you this week.
I still see the EUR/USD as a buy in the near term. You can build into it or simply do what I have done which is to take a long term approach and buy the dips.
I expect Oil to rise back up to around 37 Dollars a barrel this week or more and I expect that the Dollar will start to rise in the beginning of the week but fall heavily as the week progresses.
     Now US stocks in my humble opinion are nearing a bottom. I think that the 1900 area in the S&P could be a good buying opportunity. I will be looking for that in the near term. I would use a relatively tight stop here at maybe 1890 and see what happens. I think that we might get a blast through the psychological area but it may bounce back pretty quickly. So be aware of that area as that is the area I will be looking to get long. The area I would look to get long the EURO is around the 1.0860 area. You could look for a short in the interim to get there but I would not fight the current trend too much as it like it is ready to make a big move up on the weekly charts.
I can't imagine the Pound falling much further but it is seemingly working the longs out of the market. It will move higher this year. Much higher but for now the trend is most certainly down.
I will be traveling extensively this week and so I will not be posting a lot but you can see my ideas here for the week. I would keep an eye on some key markets like US stocks and commodities as I think they are getting very close to bottoming. Cheers!