Knowledge is power right? Or so they say….
So…..if you’ve only got a view of oh…let’s say just a small portion of the market ( maybe a couple of blue chips, gold) and perhaps the U.S Dollar “against” your own local currency well…..one might suggest adding a couple more “market indicators” to the pile.
I know you may find this incredibly hard to believe, maybe even IMPOSSIBLE to believe but….The U.S Dollar “spike” here in the wake of Brexit market madness will soon provide one of the greatest “short opportunities” of our time ( slight exaggeration perhaps ).
While you’re all drooling over the massive moves “upward” against both the EUR and GBP ( no kidding right? As the vast majority of traders got “wacked” by Brexit ) The U.S Dollar “continues to sink” against its arch rival ( or at times good buddy ) the Japanese Yen (JPY).
The two are now almost at par.
Now….for those with near term memory loss – do you remember the continued explanation here at Kong with respect to money flows on this planet? The safe havens / funding currencies such as JPY going absolutely “parabolic” during times of “risk aversion”? The money that comes “flooding back” to these this currency as large-scale “carry trades” are wound down? Well……if you think the U.S Dollar is strong right now……why is it getting its ass kicked by the Yen? Why is USD losing all support / falling like a rock against JPY?
That’s what I call JPY stength. That’s what I call “risk off”.
The U.S Dollar will soon follow….providing for large scale gains SHORT USD against any number of currencies.
I will again be waiting for a daily “swing high” in USD ( likely within the next 3-4 days tops ) for another joyous ride “back on the big short” – USD.
Pack yer bags…this could be a loooong journey.
“back on the big short” – USD? Last time I checked, dollar index did not have meaningfull slide since one in 2010. It would be pity if you were positioned excatly wrong again, like in 2014
Please……check out the timing on the most recent trades / posts going back the last couple of months. Take yer pick – The U.S Dollar short trades have been the largest money makers of my year…and about to get even better.
2010? Who gives a shit.
hi kong, if USD goes down, would tat be risk off equities or risk on? currently it seems that usd down = risk on
It’s been very interesting as for a considerable amount of time the coorelation has been flipped with USD up and US Equities up.
It appears that finally – we are back to the traditional USD down….US Equities up.
That’s the current scenario – yes as equities have likely made their intermediate low now.