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For: Thursday 04-29-2010

Euro Bear Giving Up the Fight?

The Euro currency has been in a bear trend since just before the beginning of the year. As the bearish news continues to hit the market the trend is starting to wane. I believe just about all the news has been discounted or is now priced into the market Looking at the weekly chart we see the market is trying to hold onto the middle of the trading range that was established in late 2008 into early 2009. This level should provide initial support. We will look to buy inexpensive, short dated option spreads on a break above the current trend channel.

Aggressive traders may opt to use futures. As always please consult your personal broker at Great Pacific Trading Company to see if this trade is suitable for your account.

Trade Recommendation: On a close above 13440 versus the June contract, by Tuesday of next week, buy the June 137-140 call spread for a debit of 40 points on a limit. Risk the premium paid. (>$500 not including commissions and fees), Look to take profits if the market trades to 13700 or the spread doubles in value.