Most traders and investors are familiar with stop loss orders but few actually use them in their trading. The reason is that stop losses are often viewed as a tough balancing act between keeping a tight stop to minimize losses and "smothering" the stock by having the stop so close as to be stopped out by any minor decline.

The past couple weeks we have seen strong distribution selling in the equities market followed by equally large days of buying. These buying and selling frenzies have formed a sideways consolidation.

EUR USD reached the 1.3853 high, pips away from the minor resistance line of 1.3860. Intraday bias remains on the downside, as long as the 1.3860 minor resistance line is not broken. On the upside, if the 1.3860 minor resistance line is broken it will reverse the bearish sentiment to bullish momentum and target the 1.4280 major resistance line.

The weaker U.S. Dollar overnight has put December Gold in a position to rally further following a strong surge overnight to $1362.00. Although the rally stopped short of the recent main top at $1366.00, upside momentum seems to be building. Traders appear to be waiting for the Euro to take out its last main top at 1.4028 before attempting to push this market through the resistance.