Listen……….
The $dxy (or symbol:$usd) tracks/charts the U.S dollar against a “basket of currencies” where 57% of that basket is weighted EUR – and the remaining percentage is broken down as follows:
http://www.fxtrademaker.com/usdx.htm
Often… traders will watch this symbol, and make assumptions as to the dollars strength or weakness based on its movement.
BUT……………..
When looking at individual currencies independently – “against the U.S Dollar” one can see that this is by no means accurate – and in my opinion…..extremely misleading.
I see the $dxy at 80.05 presently ( up +0.14) – which would suggest dollar strength – right?………RIGHT?
Then why is my screen “so deep in the green” when I am short the U.S Dollar?
HMMMMMM……………
BECAUSE I AM SHORT THE DOLLAR AGAINST EVERYTHING UNDER THEN SUN….”OTHER” THAN THE EURO!
AUD killin it……NZD killin it………CAD killin it.
So….You get it?
Don’t get fooled…the dollar is goin down….down……down.
Nice…. well done…. I exited all my ACI position recently… 15000 – @ 8.41 – $8.42 waiting for a good entry point for SLV… any suggestions?
Its very early here in the gold /silver turn so……….short of this entire thing taking some “surprise move” lower (which I dont see being very likely) I would more or less suggest making that buy any time.
Ive got the last of my gold orders in…..and am just waiting to get filled.
Gary is great at call bottom’s I better get in before the PM run jumps… cheers
Cycle theory / analysis (in my view) is absolutely one of “the most reliable” methods of market navigation.