Fed Vice Chairman Stanley Fischer (bad cop) was more explicit, saying Yellen’s comments were consistent with possibly two rate increases this year—including a move as early as next month. Yellen and Fischer both stressed that any policy decision will be dependent on economic data.
They both know there will be NO 2 rate hikes this year. Maximum one. And maybe not even one...
In 2014 summer the dollar started to rally as the FED announced the next rate hike period. The dollar was rallying in 2014 but no rate hike happened. In 2015 the rally continued and peaked in March. At that time we were hearing 2 rate hikes in 2015. We got one in December (LOL) and the whole market stayed . Everybody was talking about DXY 120$.... At the beginning of 2016 we heard about 4 rate hikes in this year. It's September and we haven't had even one. As I'm typing this the dollar index ( DXY ) is still at 96$...
Guys sooner or later this bubble will burst and I think it will happen next week when Fischer or another bad cop will announce or hint the miss of the rate hike in September.
Yesterday we broke above yesterday's high and printed a swing low. I was watching closely the market before the data and I saw the clear manipulation after the news. When the news came out there was a horrible contract dump in the first minute which was bought at 1306$ almost immediately. I don't know this contract dumper bought back at the bottom or he was a bit late in the dumping - hoping that the data is bad - and all his sell was bought by another big players. In this last case the late dumber R.I.P. It was an expensive game with a big loss.
So we are on Day2 today in a new daily cycle.
1 (red curve) Even if this daily cycle is a left translated we will rally minimum 5-7 days : whole next week but we are not going to break to new highs.(above 1375$) After that we will roll over into the ICL. 1306-7 will trigger the panic selling.
2 (green curve) If the dollar collapses in the meanwhile - as I think it will next week - gold not only tag the upper but will break above it making a higher high in this 3rd daily cycle. It would be right translated.
3. (purple curve) If the dollar collapse will be really tough we can break to 1450-1500$ In this case we might have a short 4th left translated daily cycle .
The intermediate decline should tag the 200 at the bottom and might marginally break below it.
and SlowStoch is as oversold as it was at the ICL. It suggest a strong rally (version 2 or 3)
And don't forget this DCL has a bear trap. Sooner or later these trapped bears have to stop out (most probably on Tuesday when US markets opening again)
No question this is long now. The real question is how long it will rally...
As we are on day 2 only it's still not too late to enter on Tuesday.
Poor bears have a bad day today. They not only have realized the bear trap but also feel the pressure of the collapsing dollar.
We are only on day 3 and almost at the triangle's upper trendline.
I say that only scenario 2 and 3 are on the table: We are going to break to new highs.
I'm not sure we are going to get it though.
Just an idea for those who would like to enter/add.
I will be adding there if we have a pullback.
If we are lucky it could come down to the 50 EMA on the hourly.
But holding a core position is always a good idea in bull markets. So you will always be in a long position in the bull market. Never miss a penny.