Market Forecast for 11-05-12

XAUUSD: GOLD: SHORT. Move stops from breakeven to 1700 to lock in $6-11 of profit on the call made on the November 2nd report.

First target very close, so still cover 1/2 position @ 1669, and hold remaining to to either 1647 or 1595. Trail stops using 240-minute or 60-minute data now, since automated forecasts are showing a potential rally soon.

EURUSD: The Euro may be in a Double Flat Elliott Wave correction. Therefore, those short on a daily break of support, exit 1/2 of position, move stops on remaining positions to breakeven point. If this current sessions low of 1.28159 is broken by 2 pips, get short some more on intra-day retracements as long as 60-minute trend is heading lower, for today and 240-minute thereafter, until larger target @ 1.2616 is hit or you're stopped out at trailing stops on 240-minute basis. See Euro charts below (weekly and daily) with complete forecast.

EURUSD weekly chart

eurusd daily

USDJPY: The Dollar-Yen pair has just completed a 5-wave advance, or will do so after one more stab at a high. Over the next 3 sessions, the market will either be pulling back or by the third day have topped and be ready to short.

ACTION: If the market breaks 80.29, look to sell intra-day rallies as long as the 60-minute trend is heading lower, until 79.50 area is reached. Maximum downside if we experience a hard break is likely 78.50. See daily Yen chart below.

usdjpy daily chart

SGDJPY: Is likely in a topping phase with a selloff likely here or possibly after one more pop up to a slightly higher high. Odds favor its already topped.   ACTION: SELL 65.49 stop to open, use 65.75 stop loss, move stop to breakeven at 65.25, take 1/2 profits at 65.00, hold remaining shorts to 64.45 the raising 4 month trend-line or  leave a bit on for a potential low at 63.80. See SGDJPY daily chart below.

sgdjpy

USDSGD: The USD-Singapore Dollar looks like it completed a 5-wave impulse wave advance from the low in July 2011 until its high in October 2011. From there, the sell off was slow and drawn out in a Double ZigZag corrective looking pattern I would label a Wave-2 pullback, on a weekly chart. Should this currency pair break the TWO-WEEK high of 1.2265, then it has enormous upside potential to the 1.2730 area, and a breakout up from there will send it to the moon.

ACTION: Buy intra-day pull backs as long as 60-minute trend is up. If the 1.2265 two-week high is exceeded, go full in there or on the next pullback you are comfortable with. See chart below.

sgdjpy weekly chart

SP500: This was almost a perfect call to go long at the low, then exit 1/2 position and move stops to break even in the early AM. Now the market will either rally for 2-6 weeks from here, or break last week's low of 1393.13 and tank to 1310-1291 area. The SP500 and the Nasdaq (ND) have both broken their six-month trend-lines, so the downside crash scenario is getting very likely again.

ACTION 1: Trade short-term intra-day swings for 1-3 days or until this uncertain crossroad is resolved. IF last week's low IS broken, then get short ASAP and keep selling intra-day pullbacks until the 1310 or 1291 area is reached, and as long as the 240 or 60-minute trends are sloping lower. If you are a well capitalized trader, the short side looks better, so you may want to SHORT early, before the breakout of last weeks low.

ACTION 2: If 1428 is exceeded on the upside, then chances are good for the 2-6 week rally.

sp500 weekly chart

sp500 daily

ND: Weekly NASDAQ chart is provided below with analysis.

ACTION 1: Same as the SP500. Use a break of last week's low to get short and/or sell intra-day rallies once broken as long as the 240-minute trend is down.

ACTION 2: IF last week's high of 2693.83 is exceeded, then we will likely see a 2-6 week rally or diagonal wedge up pattern. Downside seems more likely thus far.

nasdaq weekly chart

JP225: Japan stock index has breakout points above and below where we are at now.

ACTION: Use breakout points and targets on attached chart to guide your trade.

japan stock index chart daily

Energy markets and some commodities have broken lower as suggested.

ACTION: Trade pullbacks as long as the 240 and/or 60-minute trends remain lower.

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