1. Dollar is looking for direction (will it bounce off this level or will it drop/ and how much?) 2. NFP tomorrow is HUGE data coming out and will push Dollar over or off the current level (price is now on a crucial support level ) 3. Next inflation data (Dec 10) and trade balances will be crucial data 4. Dollar price will affect most of your trades:
- metals (negative correlation- especially Gold , Silver , Copper ) - indices (positive coefficients, which means that as the value of the U.S. dollar increases, so do the stock indexes ) - stocks (which shares to choose / which to sell / how to diversify and hedge - 40% of shares follow the dollar) - Bitcoin (the new safe haven to many may increase dramatically if the dollar crashes)
Can you explain the relation stocks dollar? in 2020 it worked the other way round, but in the previous years you were right. Lastly, beside nasdaq, what is your SP target?
FX_Professor
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@lu1977hk, investopedia.com/ask/answers/06/usdollarcorrelation.asp this is a nice link, overall. My personal targets are broken down in ways too complicated to post here... and these targets in this environment change by the week / what and how to hold on which basket... in a few words right now i am looking at real estate opportunities mostly. Shares and trading are the means to sponsor that.
BMLemon
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I couldn't agree with you more. Youtube is filled with new (and old) cryptards, along with the legacy gold shillers and stock "gurus", the contrarian would say those people are the pigs for slaughter. To add to your analysis, I'd look at how QE has not created inflation. Instead it's driven interest rates down and the dollar up. Currently there is the largest short position being taken against bonds. When those speculators realize they can't fight the fed, they're going to have to cover those positions. That short squeeze in the bond market (which we all know is much larger than the equities market - crypto market cap is pathetic by comparison), is going to destroy everything.
Why hasn't all this money "printing" had a greater effect on DXY? Something to consider, with all this talk of debt cancellation, if USD is debt, then canceling debt is actually removing supply. How mega bullish is that for USD and what effect will that have on Gold, equities, and certainly crypto? If investors are so certain gold is going to $5000 an Oz., then why are dealers so willing to sell it to you? What a great little trick to play on poor old investors wanting to protect their wealth. USD is king.
FX_Professor
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@BMLemon, i really liked this comment man! you are a 'trading poet' (Youtube is filled with new (and old) cryptards, along with the legacy gold shillers and stock "gurus", the contrarian would say those people are the pigs for slaughter) but also have a valid approach.
To answer a small part (Why hasn't all this money "printing" had a greater effect on DXY? ):
Well, DXY measures the value of the $ against other major currencies ..and they are also printing 😉so the question is IF the $ 💪🤠is doing better or worse against the euro👵, gbp👸, aud🦘, cankee dollar🍁 , chf🧀, jpy🍣 and the rest! 😺
BMLemon
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@FX_Professor_88, Tradingview is the best place to drink XD