USD/CAD - Canadian Dollar Proves to be resilient as resistance came in at 0.989

Trend lines are drawn with Andrews pitchfolk.  The resistance at the 200 day moving average was fierce, with a 3 cent decline in 3 days a notable move in the FX.

The fundamentals of the CAD are phenomenal with exposure to commodities such as Oil, Gold, Silver, Potash, etc which has been booming for over a year with QE1,QELite, and QE2.  The markets have rallied on the passage of the austerity plan in Greece, which has reduced the possibility for a Greek default in the short term.  The true test of will come when the citizens feel the true gravity of the downsizing and taxation increases. 

ESSENTIAL ENERGY SERVICES LTD (ESN.TO): Breakout, 6%+ pop midday

Yesterday post on the high volume signal was apparently was dead on.  Check it out.

This breakout is by all measures over extended so a pull back tomorrow could happen but this should be considered confirmation of a trend change until proven guilty by a break below the 1.90-1.95 range.
This stock has just completed an acquisition of Technicoil which has led to a larger service offerings and larger client base. 

ESSENTIAL ENERGY SERVICES LTD (ESN.TO) Review: High volume June 29th, 2011

Resistance as expected on that trendline as well as the 200 MA.   However, today saw strong buying volume with oil surging.  Everything will depend on the Greek vote tomorrow, so expect volatility on open as I believe the vote will be held around 6:00am EST

S&P500 Update: New short term uptrend established and Wednesday's Greek Austerity Vote

June 28th saw a pop from the markets at the beginning of trading.  This jump was sustained into close.  Interesting enough, using Andrew's Pitchfork, from the lowest low to the high point and the low of the correction, we can see a potential uptrend being established.  This lower channel is where support was found in the morning setting off a rally which ended in the middle of the lower channel.  Watch for retests of this channel for clues to see if a change of trend is actually occurring.

The major caveat is systematic risk.  There is a lot of problems showing up again and the governments around the world are attempting to find answers for them.  Most notable is the Greek austerity vote tomorrow.  This vote will be a sign of things to come, as a rejection of this vote means a renegotiation with IMF and EU on aid packages.  This would bring the markets under pressure as sovereign default becomes a plausible outcome.  In addition, Greece would likely have to vote for a new government one which aligns with the interest of the citizens. 

A summery of the Greek Austerity measures that are on the table can be found at the BBC in this article

The measures are broad based touching taxation, public sector cuts, spending cuts, cutting benefits, and privatization.
A few examples:
"A solidarity levy of between 1% and 5% of income will be levied on households to raise 1.38bn euros."
"The tax-free threshold for income tax will be lowered from 12,000 to 8,000 euros."
"The VAT rate for restaurants and bars will rise to 23% from 13%."
"Nominal public sector wages will be cut by 15%."
"Wages of employees of state-owned enterprises will be cut by 30% and there will be a cap on wages and bonuses."
"Education spending will be cut by closing or merging 1,976 schools."
"The statutory retirement age will be raised to 65, 40 years of work will be needed for a full pension and benefits will be linked more closely to lifetime contributions."

I always wonder about the reaction to such measures if they were instituted in Canada or the US.  More interesting would be the government reaction to protests to these measures.

ENW.VN stock analysis Update: Likely Bottom found in ENW.VN

The bottom of this downtrend was expected to occur based on previous analysis located here: ENW.VN -> EnWave, stock finding support, Signs deal will Kellogg Company

Today the price found support at the Bollinger band resulting in a long tail.   There was sizable volume today compared the the previous 9 days.

The picture becomes clearer when we look at the 15 minute chart.

Two major volume spikes  in the middle and at the end of the day. The bottom appears to be the 1.70 level. It appears for now at least that a higher weekly close is likely in Enwave (enw.vn). 

A possible explanation on what happened today in Enwave can been seen from the Wikipedia entry on Market Trends, where they explain market capitulation.

Market capitulation (from Wikipedia)

Market capitulation refers to the threshold reached after a severe fall in the market, when large numbers of investors can no longer tolerate the financial losses incurred.^[13] These investors then capitulate (give up) and sell in panic, or find that their pre-set sell stops have been triggered, thereby automatically liquidating their holdings in a given stock. This may trigger a further decline in the stock's price, if not already anticipated by the market. Margin calls and mutual fund and hedge fund redemptions significantly contribute to capitulations.^{[citation needed]}

The contrarians consider a capitulation a sign of a possible bottom in prices. This is because almost everyone who wanted (or was forced) to sell stock has already done so, leaving the buyers in the market, and they are expected to drive the prices up.
The peak in volume may precede an actual bottom.

 The key is the few lines.
Firstly, Confirms that capitulation is considered by some to be a bottoming event.

Enwave (ENW.V) experienced capitulation in the middle of the day when prices broke 1.80.  Large sell volume was followed by strong buy volume around 1.70.   Then by the end of the day, continued buying potentially confirms the reversal.