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Thursday, July 31, 2014

Trade Idea Wrap-up: USD/CHF - Buy at 0.9035

As the greenback has retreated again after faltering below yesterday's high of 0.9107, retaining our view that minor consolidation would be seen and pullback to 0.9060 cannot be ruled out, however, reckon downside would be limited to support at 0.9035 and bring another rally later, above said resistance at 0.9107



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Trade Idea Wrap-up: GBP/USD - Sell at 1.6950

As the British pound dropped again after meeting renewed selling interest at 1.6928 earlier today, adding credence to our bearish view that recent decline from 1.7192 top is still in progress for retracement of early upmove and further weakness to 1.6840-50 would be seen, however, near term oversold condition should



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Trade Idea Wrap-up: EUR/USD - Hold long entered at 1.3402

The single currency has remained confined in narrow range after falling to 1.3367 yesterday and further consolidation is in store, however, as long as said support holds, prospect of another rebound remains, above the Ichimoku cloud top (now at 1.3408) would suggest low is possibly formed, bring test of resistance



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Trade Idea Wrap-up: USD/JPY - Buy at 102.35

As dollar has retreated after faltering below yesterday's high of 103.09, retaining our view that minor consolidation would be seen and pullback to 102.55-60 cannot be ruled out, however, reckon 102.30-35 would limit downside and bring another rise later, above said resistance at 103.09 would extend recent rise to 103.30



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Trade Idea: EUR/GBP - Buy at 0.7855

Euro's near term sideways trading is expected to continue and near term downside risk remains for a test of last week's low at 0.7874, break there would extend recent decline towards 0.7850-55, however, as this move is still viewed as the final leg of recent impulsive wave, downside should be



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Trade Idea: USD/CAD - Buy at 1.0850

As the greenback has retreated after intra-day brief rise to 1.0930, suggesting minor consolidation would be seen and pullback to 1.0850 cannot be ruled out, however, reckon 1.0820-25 would limit downside and bring another rise later, break of said resistance would extend the rise from 1.0621 low for at least



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Muppet Slaughter: Goldman Removes Adidas From Its "Conviction Buy" List Minutes After Its Biggest Drop In History

As reported earlier, following some horrifying guidance German sportswear titan Adidas tumbled by the most ever, blaming not the weather, or the World Cup, but Russia (leading some to wonder just who will be shouldering all those "costs" Obama refers to during every teleprompted appearance).



What we didn't mention is that today's record massacre of Adidas longs happened minutes before Goldman decided, after the fact to remove the company from its "Conviction Buy" list (but still kept the stock that has lost 18% in the past year at a Buy).


To wit: "We remove adidas from the Conviction List following the company reducing FY14 net income guidance (to €650mn from €830mn), resulting in 33%/40%/46% cuts to our FY14-16 earnings estimates. Our new 12-month price target is €77.5. Since being added to the Conviction List on October 18, 2013, the shares are -16.1% vs. FTSE World Europe index +6.7%. We also remove the stock from the Directors of Research Focus List."



What can one possibly add here to the following well-known image which says it all.












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