The December Euro is down 64 ticks at 1.4862 this morning as I write. The enclosed chart shows that the December Euro is still involved in a strong up trend despite today’s weakness. The directional movement indicators are bullish and the ADX line is rising confirming the strength of the trend. I would expect corrections all along this bull run, so I will be looking for a place to add to our bull position. Followers of this letter should be long one December Euro (158.00 strike) call option from 32 and short 2 December Euro (160.00 strike) call options from 20 ticks for an overall credit of 8 ticks or $100 gross.

Oct. 16, 2009
David Hall