Stocks have almost completed their “intermediate cycle low” so you “holders of paper” only need to wait another day er two / catch your breath / don’t freak out.
You have grown “so complacent here” that these “few down days” have you on pins and needles, debating whether you should simply just “sell” before you’re left with nothing.
You sell on green candles traders ( some days ago? )…… and you buy on red.
None the less…..we are still very much so in a right translated / daily uptrend in stocks – with this cycle extending to like…..38-40 days? Wow….a long one….but now near completion.
Dow Nears Support
This is still a very strong uptrend – with an “intermediate cycle decline” now near complete. The test of support area ( as seen by the black line ) looking good.
I can only assume the next leg higher starts like……tomorrow.
Bitcoin slowly moving up from the proposed low at 6400.00
Gold = flat ( who really cares right? )
USD – Crater on deck – as suggested.
Daily cycles can vary in length for different assets, but in general The U.S Dollar tends to move in an “18-22 day period” from trough to trough.
The previous daily cycle topped out on day 4 then rolled over for a good solid move lower over a 16 day period.
Today marks the beginning of a new daily cycle now………don’t get excited.
USD Downtrend to Continue
A new daily cycle that will “again fail” early ( if not immediately ) and roll back over for another “crater” into oblivion so……..a new daily cycle in a “bearish downtrend” only providing further opportunity to SHORT. The dark black line showing the resistance zone for USD. She ain’t poppin thru that – no way!
I’m not flinching / moving a muscle as today is a single day’s action that has already run straight into overhead resistance. The U.S Dollar is NOT reversing its downward trajectory here – hell no.
Waterfalls ahead. Stay Short – keep accumulating crypto. You’ll see.
Please Read: I’ve highlighted the significant bits.
kong and rickards
Jim Rickards – Markets Are Experiencing Cognitive Dissonance
I told you I would be re buying gold right around the time I saw The U.S. Dollar bounce completed.
Well………The U.S Dollar bounce will end tomorrow so one can’t get to picky about “the perfect entry” but….
I’m re buying NUGT here at 12.35. Right here…right now.
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…..
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.
I laugh out loud this morning….as Im sure you´ve seen my last two posts – encouraging you to get short USD.
Talk about timed to perfection. USD is getting hammered on ¨no real news¨ and look at that…..U.S Equities falling pretty hard too. Again I wonder about all those blow hard ¨dollar longs¨struggling to understand how I keep making this look easy.
The trade is ¨short USD¨…….the reasons are many.
Timing has been key here these past months as you´ve recently seen me come out of hiding to bang down the first trade in weeks – if not months.
Boom……. thar she be.
As I am always a touch early……..short USD trades are looking very good here.
One can see that The Buck has had it´s day, and has now been soundly rejected at the 200 SMA.
You guys can look back and recall short trades in Apple – with the exact same set up. Very straight forward…when an asset hits the 200SMA from below, then gets smoked. A very large level of resistance, and generally a pretty clear indication that things will be headed lower.
USD Rejected at the 200 Simple Moving Average
You can look for a million different reasons, but fact remains that a rise in interest rates will blow this market up, and that if anything….further easing will likely make more sense, and that´s bad for USD.
You have to keep in mind that the big boys are ¨spinning the story¨ not sheepishly following along! Long positions by the big boys have already been sold to you, as the common man ¨reactes¨ to the trickle of silly news stories aimed at keeping you on the wrong side of the trade.
You falling for this shit? Grab a backbone. Get informed. Remember the days when The U.S Federal Reserve was printing like mad, and crushing the currency with hopes to boost exports and the economy?
How did that go?
I took this graphic from “somewhere” as it’s a great visual representation of what is “really going on” with the U.S Dollar and international trade.
Don’t be a dope. If the arrows and numbers where pointed in the “other direction” then perhaps you could build a case. The numbers speak for themselves. The U.S “strangle hold” on the world’s reserve, and in turn “slice of the pie” generated via currency exchange ( in order to buy commodities ) is over.
Again….you generally need to be “ahead of these moves” in order to take advantage ( note yesterdays post- please scroll down ).
Gold, & Silver Jump As Citi Sells All USD Positions Fearing “Squeeze”
I envision a time ( in the not so distant future ) when “all things American” ( USD, Stocks and most certainly the bonds ) are sold.
I’m sure you’ve noticed the correlation of USD strength = U.S Equities strength so…..one would have to imagine the complete and total “inverse relationship” as well right?
Or they just all keep going up forever. RIght.
Little chance of that.
Other than the few short USD positions already in play I’m more or less “cash ready” for the large positions “long JPY” ( against most every other currency on the planet ) kicking in here soon.
No shorts in SP 500 as of yet.
More at the Members Site: Forex Trading With Kong