EURO Futures 1/12/12

Our stance on the EURO remains to hold onto sold short positions.  Some consolidation appears to be occurring in the short term.  We have no idea if the short term pause will turn into a new intermediate term uptrend of significance or not.  We plan to keep a bearish stance until price action suggests that trend is over. 

EURO pattern still looking like one of long term distribution to me.

Intermediate term price trend in EURO futures remains down.  We have parallel trend lines in place as part of our defense against any significant changes in this trend. 

Moving average envelopes are still in downtrend mode. 


RSI is in downtrend range on both time frames, and no positive divergence, save for a very small one on the daily chart, formed prior to the current consolidation.  


While a rally would not be surprising after such declines in prices, we don't currently see reasons to use extra tight stops right now.  It's best to let trends run until they tell you its over.  We can lock in a profit with a loose protective stop, allowing opportunity for the trend to turn into an exponential profit. 

The Dynamic Trailing Stop indicator provides two possible levels for stops.  Weekly DTS is a bit more loose than daily DTS.  The automated system I have been working on currently has a stop between these to levels. 


ADX confirms trending behavior for both time frames. 


Current Stance
Long Term: Hold Short 

Intermediate Term: Hold Short 

Definitions: 
Flat = no position / not long or short the market. 
Sell / Short = positioning to attempt to profit on price declines
Buy / Long = positioning to attempt to profit on price advances
Hold = hold a long position
Hold Short = hold a short position    

The European Debt Crisis and Your Investments
A look back on 18 months of analysis and reports on the European Credit Crisis
By Elliott Wave International

EWI's analysts have been anticipating and tracking the credit contagion across the European nations for the past two years. Elliott Wave International subscribers were first alerted to the still-developing European debt crisis back in December 2009. Read More.