Today with the comments that the sub-prime debacle is now effecting commercial real estate and the release of the home sales numbers this morning, it is interesting to see the effects on global currencies. While these currency pairs below are in triangle patterns on a daily chart, the moves inside these triangles show how volatile and spooky the markets are right now. Every bit of economic data released is looked at with greater and greater importance. It leads to the question: Would things be different if the Federal Reserve lowed interest rates 50 or 75 basis points? The effects of lowering rates today would not be felt economically for months, yet the focus is on the stock market and how the stock market needs a rate cut for a calming effect. Why do we need calm markets? The markets are volatile currently for a reason, and volatility will return to lower levels when there is less reasons to have decisions governed by fear.
USD/CHF 5min Chart - easy to see when the housing numbers were released.
USD/JPY Daily Chart
USD/JPY 5min Chart
Following the currency markets overnight can give a clue to what the equity markets might hold for the day. There are many free demo trading forex accounts, but the charts posted here are some of the better ones I have come across. They are available through fx solutions. There is a link to their site just under the Blog Archive to the right of this article. The free demo account is worth doing just for access to charts and the 100 or so indicators they offer.
S&P 500 Index 50 and 200 Day Moving Averages with opening range levels.(click to enlarge)
FLIR - Flir Systems Inc.
FLIR Systems, Inc. designs, manufactures, and markets thermal imaging and infrared camera systems in the United States and internationally. The company operates through three divisions: Thermography, Commercial Vision Systems, and Government Systems. The Thermography division offers products for commercial and industrial applications, where temperature measurement is primary requirement. Its products provide highly sensitive temperature measurement, sophisticated image processing, and extensive analytic capabilities. This division's products are used for predictive and preventative maintenance, research and development, test and measurement, leak detection, scientific analysis, manufacturing process control, building inspection, and thermography applications. The Commercial Vision Systems division offers products for commercial security, automotive, marine, airborne, and first responder markets. This division sells its products through direct, original equipment manufactures (OEMs), and third party distribution. It serves perimeter security, automotive night vision, transportation night vision, marine, electronic news gathering, and law enforcement markets. The Government Systems division provides a range of products, which allow the user to see in total darkness and through various obscurants, such as smoke, haze, and various types of fog. It offers hand-held imaging systems, as well as fixed or vehicle mounted products for land, airborne, and marine applications. This division serves search and rescue, force protection, border and maritime patrol, surveillance and reconnaissance, targeting, federal drug interdiction, military, paramilitary, and police forces markets.