Dollar Finally Bottoms – Flip A Coin On Stocks

Well well well…..it looks as though USD has finally, FINALLY found its bottom.

I can pull out a number of fantastic correlations / trades in the currency market ‘specific to USD’ but at this point in time…..the general market movement / usual correlations will be saved for another day – as we’ve all seen a number of these fall apart as of late.

Gold has fallen consistently “with” USD which in most cases makes no sense, tech stocks have been clobbered and considering the buoyancy in markets in general….have NOT been actively participating.

EUR/USD pretty straight forward here: SAFE TO SHORT

safe to short EUR

                                                                                  safe to short EUR

Markets continue to trade in “good ol summer fashion” leaving most traders scratching their heads looking for direction.

It’s nuts out there! You know it, I know it.

You’d think an intermediate bottom in USD would send Gold decidedly lower…but even there….gold has landed near an area of support so…..we’ve got some “rotation” going here, and need to take the time to figure out –  WHERE IS THE MONEY GOING NEXT?

Risk trade in AUD/JPY would appear to have hit resistance but…..nothing to write home about.

Risk Trade in AUD/JPY

                                                                                Risk Trade in AUD/JPY

It “almost looks to me” like a bottom in USD might amount to more U.S stocks being sold, and in turn US dollar reserves moving higher, while gold stays flat but….that’s pure speculation.

We need another day er two to see how things unfold from here. I’m short EUR/USD – and that’s it!

 

 

 

6 Responses

  1. Simon Kennedy July 4, 2017 / 1:48 pm

    FK thank you very much for sharing your experience and ideas. Really appreciate it. Cheers, Simon

  2. Mike Miller July 5, 2017 / 5:35 pm

    With the year half over, what is crazy is the Federal Reserve and their new-found ability to control the markets have thus far made people like Jim Rickards look like idiots. Not to mention Jim Rogers and others. Their thesis is not playing out anything close to what they forecasted while the morons and crooks at the Fed have been spot on even while raising rates. IS THIS TIME DIFFERENT??????

    • Forex Kong July 6, 2017 / 10:52 am

      Ya man……this is playing out over a much longer time frame than most would expect – but!

      We know that old saying…..markets can remain irrational longer than you can stay solvent.

      This is where the real test comes….this is what separates the long term players from the kids toying with the buy/sell buttons. My trade activity has more or less dried over the past few months as……..I know this game very, very well. There’s been no point trying to squeeze anything out of this / risking the likelihood of getting killed.

      It’s this way by design.

  3. Palehermit July 6, 2017 / 7:37 pm

    Extreme boredom to trade now….not only it’s just off… market is just sporadic and sparstic…

  4. pennyweedstock July 8, 2017 / 9:59 am

    Thanks FX kong. A really worth outlook on EURUSD. Btw I am short too

  5. Chris July 13, 2017 / 7:58 am

    double tap USD? we shall see… PPI and Yellen coming up. Still short the Euro.

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