@chris7559, You're welcome. I am expecting that the DXY may provide resistance to natural gas price action this week upcoming and so worth considering. I will only buy NG ( long) if I see DXY leveling out. ( ditto for metals and oil)
chris7559
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@AwesomeAvani, As far as level out, do you mean stabilize and lower? I ask as I was thinking the higher DXY may give a lower price opportunity to buy--specifically to metals? I was thinking as well NG/oil may be a better buy when recession is acknowledged/economy slows? What are ur thoughts?
AwesomeAvani
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@chris7559, supposedly recessions will slow down the demand for commodities and so a tendency to stagnate or lower prices. OPEC+Russia do the simple thing they lower production to match lower demand to maintain price ( and profit) My take is that if dollar value is rising, the cost of commodities goes down (relatively). If dollar value is rising now I can imagine it will rise even more once the debt ceiling crisis is resolved. (for US to default would be catastrophoc and won't happen) So yes, I see dollar strength increasing as a drag on commodities priced in dollars accordingly I am relluctant to go all in unless dollar strength at least stagnates. From a different view, dollar strength rising adds synergy to any short plays on commodities. ( The risks of longing leveraged ETFs added to dollar strength dynaics makes me inclined to only make short trades a day or two at the most to avoid the decay of time in the leveraging and dollar strength movement.
chris7559
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@AwesomeAvani Yes, I find it a little bit of an unsettling market for long term holds