WE'RE STILL WAITING FOR THE SANTA CLAUS RALLY ON THE DOW, BUT SANTA HAS ALREADY GIVEN US A GIFT (USDNZD)

The markets took a nosedive after the Fed interest rate announcement, clearly unhappy with the Fed Chairman's decision for a 0.25% rate cut, instead of the expected 0.50%. So did Bernanke become the Grinch who stole Christmas? This is why we play in multiple markets. For as Santa has been quietly holding back on the Stock (and Options) market, he has been magnanimous in the Forex market. The USDNZD has been one of the really clear patterns which has already given us 100+ pips (since my alert on Tuesday and subsequent SMS on Thursday, to FXoptions members). It has been quietly developing a channel for the past one month, and is now clandestinely working its way back up after hitting the downtrend of the channel (which also coincides with the bottom of the Bollinger Band and the 100-Day SMA). So we will have a merry Christmas after all!

(Click on Chart to Enlarge. Generated using Accucharts)


Chief Shook