Good Afternoon,

You know how much I like Fibonacci's, so finally, we will draw a Fibonacci on the broad markets. Prior to that, let's get to the fundamentals. And.... they stink.

**Durable goods - stink.

**Claims - better than last week, but still holding well above the 350k average - stank

**CHIPM tomorrow - hovering just above 50 - stunk

Stink, stank, stunk. Yes, I am a huge Grinch That Stole Christmas fan. But this year, Christmas is going to be great! There is no grinch in sight! The equity markets are booming, volatility is low, we will have 4 more years of Obama (just stating a soon-to-be fact), and further upside in the markets are endless as QE to infinity is upon us.

Why do we have further upside? Because the buying is incessant. Two down days in a row, a near zero point correction in the markets (given the bull run of the past 4 years) and then you get a day like today. In your face sellers/shorts/bears!! If you are a seller/short/bearish, you better have been out yesterday afternoon!

Buying, buying buying. Here is the SPX and the Fibonacci I mentioned:

Past performance is not indicative of future results

If we get towards the "DOUBLE FALL LINE" area, will that mean buying puts are the right strategy? With low volatility, selling premium via bear calls can effectively be done if you are willing to sell at the money or just slightly out of the money.

Another Fibonacci can be drawn on oil prices:

Past performance is not indicative of future results

And to show you how the USD/CAD is tracking:

Past performance is not indicative of future results

If oil is going to turn around, the this support line should hold. But if equities keep climbing, look for the USD to fall back towards teh mid .9700 area. I do think that the .9627 low is a pretty healthy low unless equities take off, dragging oil with them. Why do I say dragging? Look at the Fibonacci levels in the SPX chart compared to the USO chart. The SPX is already at 62 and USO isn't even at 38 yet. That is your leader/laggard (strength/weakness) lesson.

Oh by the way, Christmas is now 89 days, which means ski season is only 64 days away!!

IBFX Webinar tonight: Q3 Review/Q4 Preview

Happy Trading and Be Environmentally Cool

Coach Brian

Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.