One can only wonder how “positive for markets” a 7.5 Earthquake off the coast of Fukushima will be ( no sarcasm there )
Regardless…..USD topping out for the long plunge over the next several weeks.
I’m jumpin on board here shortly, and will likely get picked up sub 99.00 with tonnes of room for lower.
I like the short side, as people freak out and movements are so much bigger.
Steady as she goes…..
The currency pair USD/JPY ( U.S Dollar vs Japanese Yen ) is a bellwether for “risk appetite” in markets. Simply put, when the currency pair rises…..risk is ON. When the currency pair falls – RISK OFF.
Risk ON meaning……the general investing community is in “buy mode”. Risk OFF meaning – “sell mode”.
USD/JPY – Weekly Chart.
I’ll let you be the judge….as “per always” – you can lead a horse to water – but you can’t make’em drink.
This chart looks terrible. After months of consolidation( June, July, August, September ) and now with the recent run up into “and after” the U.S election, USD/JPY finds itself at an interesting junction. You don’t see this in equity/stock markets as they only give you a tiny glint into the real world economy ( if any insight at all, considering the money printing and Wall St. corruption ) but…..currencies don’t lie.
USD/JPY will very soon turn. Global stock markets soon to follow so I challenge you to consider….
Are your assets currently protected? Stop losses? Mental stop losses? Greed got you by the balls? Any notion “what so ever” that…..tides may turn?
I’ve softened over these past years as….the Central Banks have made it impossible for the average “at home investor” to even consider things moving lower. I’ve “sung to the choir” at least a handful of times over the past years…encouraging my followers to exercise caution. I’ve been right at times….and horribly wrong at times.
This is another one of those times.
Caution warranted. Nothing more.
The U.S Dollar has now reached “another” serious area of resistance here around 100.00 / 99.85
Inversely gold and silver mining stocks ( and likely the entire metals complex ) look to be putting in a serious low here ( as suggested in my previous post ).
As I’ve suggested time and time again….the absolute best way to play these “potential turns” is to place your orders some 50 – 100 pips “below” current price action….or in the case of “getting long EUR/USD” some 50 – 100 pips “above”. This way…..you don’t get picked up if price moves against you ( nothing ventured nothing gained right? ) OR you do get picked up on momentum moving in your direction.
Another way to do this is to place your order “above or below” the previous days high/low ( as seen by the bottom or top of the candle of the previous day ) – keeping yourself out-of-the-way of intra day fluctuations, but still leaving you tonnes of room for profit – should price action move in your direction. The key is to get into the trade “on momentum” and not get caught in the daily volatility.
You can’t pick an exact price. You never can. No blog, no investment consultant, no snake oil salesman can call it that close – it’s impossible when you consider we are talking about moves in a currency as small as 1/100 of a cent!
As well…..if you are looking for further confirmation / theory that perhaps things are ready to turn lower….take a look at Apple ( AAPL )
If the entire planet is so “hell-bent on buying U.S Equities” – How come industry leaders like Apple look like shit?
In the wake of President Trump´s “trouncing”of Hilary Clinton, markets have been less than kind to our beloved gold and silver mining stocks. But wait…..
The Daily Chart of IMG
Stepping back and looking at the bigger picture, one can most certainly see that “all is not lost”. In fact….as I continue to build positions in one little gem in particular ( IMG ) we can look at recent days movement in the stock ( and in my view the entire metals complex ) as an excellent “opportunity” to take your shot, likely having missed out on my last buy some weeks ago.
Keep in mind the time frame here, ands “how long it has taken” for this stock to:
- Finish it’s downtrend: If you consider October 10th “the bottom” we can see price movement “gradually” heading in the upward direction, but it’s not until the green box that an experienced / seasoned trader / chart reader can honestly “confirm”….
- Uptrend has been established: Why you ask?? Because the series of “lower lows and lower highs” ( the zig motion of assets in a downtrend ) is now broken with the establishment of a “higher high”. It’s this signal that essentially “confirms that the downtrend has ended” but then of course you get this….
- The first major pullback in a newly established uptrend: It’s the stock market right? Everything generally moves opposite to what the majority of traders are thinking / doing so it only makes sense to see a major “dump” directly following confirmation of a new trend right?? This is so basic, so common and such a standard that many an experienced trader develops plans to “always look to buy on the first major pullback in a newly established uptrend”.
You can see how the levels so closely match those of the previous downtrend ( the orange line across the chart ) as the same levels that once offered resistance, now offer support ( see what happens when you start marking your price levels! ) with this major reversal looking something like a big huge “W”.
Price could just as easily stick around these levels for some days, but if traditional technical charting is worth a damn….this would be an absolutely fantastic place to take a shot at entry, as I am adding to my current position here at 4.98.
The expected “pop n drop” post-election looks to have run it’s course, and I would expect that both gold and Euro will continue to move higher, with stocks and $USD finally topping out. Opportunity abound my people….all you need to do is pull the trigger and keep yourselves protected.
Hope it helps. Have a great weekend everyone.
How’s that for an absolute smash in the face?? Gold n Silver holding tight…but USD ripping faces.
Lessons learned….as Nikkei provides absolutely no direction here today.
A day to remember, as the entire planet looks to re-evaluate the insanity.
When you see an over night wash out like that……..you take notice.
A full 200 point drop and return to 97.80? Common – hit this thing today.
If I’ve said it once, I’ve said it a thousand times! You guys don’t have a chart of The Japanese Nikkei on your radar??
What do you think “Dow Futures” are numb nuts? ( I mean in the most literal sense )
How bout millions of traders waking up on the other side of the planet ( in Japan ) and selling like mad! Now that’s some real fortune-telling there Kong…how can you see the future?
Look to Japan dumb ass (not you my loyal readers of course). I’m talking to the “dumb asses” ( you know very well who you are). The US Dollar now taking the largest one day loss I think I’ve seen in my entire life.
Maybe this bounces back if Clinton manages to pull this out but man..it really doesn’t matter.
I wonder what the gold spike will look like in wake of this full-blown US Dollar crash. Pure money, money, money.
Hang on to your hats gents….gonna be one interesting trading day tomorrow. I might unload my gold and silver trade for huge profit, or I might just sit back and watch the action.
This market has now taken out some pretty serious support, but now is essentially “too over sold to short”.
With the election looming – it would not be advised to make any large scale trades/investments or decisions as……no one wins come November 8th.
Gold miners bought weeks ago looking great as “king dollar” takes the expected pounding. No rate hike and two nut bars looking to take over the country. How could you possibly consider a “bullish” angle – short of a “pop” and then “ominous drop”?
I’m adding short USD and holding my Gold…..now eyeing “short Canadian housing” as the next big win. Currently researching the best way to hit it.
More on that soon.