Some interesting cues:
- Large speculators in oil are net long, and at 4 month record low levels of shorts in oil .
- Commercials hedgers are increasing their oil shorts.
- Commercial hedgers have reduced their Euro longs dramatically and are now net short the Swiss franc (but net long and increasing GBP longs)
- Commercial hedgers are net short S&P500 now.
That being said, the Australian dollar might just move sideways while the dollar gains some strength, I would avoid shorting it, since it appears to have reversed the long term downtrend from the all time high.
I expect equities to rally this year, after a correction (we remain range bound). This correction in stocks matches a potential oil turn around, which also aligns well with a retracement in silver and gold , before both (as well as copper and palladium ) resume the uptrends that emerged from the lows.
I'll monitor the action this week closely and update this chart, we might see some very critical moves from here onwards.
has been very good this year in Forex, and I expect it to continue this way.
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