Forecast for 06-13-12 – EURJPY and SP500 Trading Ideas

Today's report focuses on the Euro-Yen cross and the US stock market (S&P500).

EURJPY (see the chart with analysis below):

TRADING IDEA 1: BUY 99.80 stop to open, use  99.22 stop loss, move stop to break-even at 100.19 and exit 1/3 position. Exit another 1/3 to all at 100.51 sell limit, then trail stop on any remaining positions at 30-40 pips and/or exit any remaining at 101.50 sell limit.

TRADING IDEA 2: SELL 98.90 stop to open, use  99.22 stop loss, move stop to break-even at  98.38 and exit 1/3 position. Exit another 1/3 to all at 97.97 buy limit, then trail stop on any remaining positions at 40 pips and/or exit any remaining at 95.51 buy limit.

eurjpy euro-yen four hour chart

SP500: The stock market rallied as expected (click here to see previous report). Now we are into the Andrews Median Line resistance and a potential head and shoulders top formation on the 240 minute (see the 4-hour chart below).

TRADING IDEA 1:  IF long, move stops to 1319.70 and trail 8-10 full points.

TRADING IDEA 2: SELL 1319.70 stop to open, use  1326 stop loss, move stop to break-even at 1308 and exit 1/3 position. Exit another 1/3 to all at 1286.50 buy limit, then trail stop on any remaining positions using 21 full points for a potential flash crash.

sp500 us stock market h4 chart with analysis

The stock market  could still pop up out of here in a last-ditch election run. The Eurodollar interest rate futures moved forward (positive offset) by six months has been suggesting that the market would bottom around June 3rd. So far that has happened. However, since global economics are in such a precarious situation and long-term we are looking for a complete meltdown globally, we have to be vigilant for a big move down off of any reasonable pattern, such as this potential head and shoulder top, and anytime the daily trends are heading down, like they are still doing now.

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