Hey folks, not a trading call today but maybe this helps some of you get a direction in the coming weeks.
We have a VERY STRONG sell signal in the Dollar Index now. Its called a "Railroadtrack" its a old signal dating back to the 80s/90s and is considered to be very reliable even in todays markets.
Remember that this is a weekly signal so its powerful but do not just short the market on monday and complain to me when you blow your accounts because it does not drop right away :P What is very possible next week is that this RRT gets retraced to maybe 30 - 50% of its move. That is still normal and would be a perfect way to play this on the short side. It is also very possible that we will now drop very very fast so be ready for that, too.
2nd Scenario is even more likely because since Skynet has taken over the markets we traders get fewer and fewer chances to enter markets on nice and safe levels ... Thats intended and we have to live with that.
What is not shown here is that Trend in quarterly is down and that we now have a quarterly stop grabber, too (thats another very strong sell signal for the greenback.
kk stay safe and I hope you can use this info to make some money :D
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Quick Update. So far all looks good. The SIgnals have confirmed and are in play. We are currently in the retrace that I posted about above :) Great spots to go short and risk is reduced now
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OK update very important!
Today could be decision day already. We are close to 101 and this is the maximum retrace this should get. This is exactly so far as my system suggests. If we go to 101 now and then fall it has done everything exactly as it should.
IF the fall does start at 101 it will run long and dollar will loose much in the coming weeks...
IF the fall does not start at 101 and it goes higher to lets say 101.5 and maybe even stays there. Its time to leave Dollar shorts and wait for the next big reversal target at 107
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Looks good so far ... Nothing more to add I would look for shorts now.
Careful, this chart will break that last high. Proceed with caution. Stops were already taken down low. Now MM is swooping back to take out those who are correctly long while collecting more shorts. I see a touch of the 95.90 area and then this chart ascends like a missile.
josephigg
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a massive part of all corporate loans are in US dollars so that means foreign companies that need to pay their loans will need enough liquidity in us dollar in order to pay there loans. I see it rising higher but eventually plummetting due to what you say.
kevinandersonss
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good information! I agree with you totally, we will see big downside soon just as your signal shows. We are probably seeing some upside this week tough. Because we see more and more virus cases and that freaks people out, so people sell their stocks and come to usd dollar instead. So that will probably the recovery to the downside we saw the previous week. But we have to remember USA is behind in the pandemic. Soon they will get big waves in virus cases and that should be the time to sell and see massive downside. The virus is what drives market today and the effects of it will make the dollar sink as well. They are just in the beginning of the pandemic, and over 3MIL people are jobless. Imagine in 3months when the biggest waves of virus has struck them. They will be out, just as their currency. unfortunately, but we can make money of that
Fibtree
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Thanks all for your comments and views :)
I do not like fundamentals for trading calls as they are not accurate enough and can change quicker then you can say OUCH! :)
There is one fundamental reason if you like one ... 2 Trillion new Dollars will ruin this currency sooner rather then later :(
personally I do not like to see USA in such trouble, believe me!