Dollar vs. inflationDollar is getting stronger recently, but a stronger dollar does not mean much if it is weaker than inflation. This DXY/TIP ratio chart tries to show that technically dollar is rising but is still weak comparing with inflation protection bond. Before I hold dollar for long term investing, I would like to see at least:
. the ratio breaks the blue resistance line to the up side.
. Stoch turns up above 30.
. MACD turns up and above 0.
. RSI breaks the blue resistance line to the upside and the value is above 50.
Search in ideas for "RATIO CHART"
RATIO TRADE - LONG TESLA TSLA VERSUS SHORT PRICELINE PCLNSINCE BOTH TESLA TSLA AND PRICELINE PCLN reported earnings and those are now out of the way, I'm willing to say that I think PCLN will underperform TSLA and continue the pattern here of a giant cup&handle formation. I was tempted to post this trade prior to the earnings, but didn't think it was worth the risk of a massive gap-move on earnings day.
I think the return will come from PCLN going down and TSLA going sideways, but this RATIO CHART is the daily price ratio of the stock prices. Think of it like a $16 stock with the ratio at 0.16 here. If it goes up to 0.19 it will be a relative 13% gain in TSLA versus PCLN. The risk is roughly 10% but the odds are high for a profit, from my perspective.
This is truly not a CUP&HANDLE in the truest sense of the definition - it isn't a show of "accumulation" of Tesla relative to Priceline, rather it is just a chart pattern that is similar to it. It doesn't have the LOGIC of the accumulation pattern that an actual stock will have.
Cheers.
Tim 10:45AM EST 5/9/2014
The aLTCoin Market's Moment Of Truth Is Upon Us! (Version 2.0)This is a follow up to a chart I posted yesterday here:
I wanted to prepare a chart to illustrate the current predicament Litecoin & to a greater extent, the entire altcoin market now finds itself in. This time I wanted to focus in much greater detail what possible scenarios might play out.
Litecoin is fast approaching a historic 'Moment of Truth'. Right now, LTC is either the most undervalued coin on the crypto market. Or what the Bitcoin purist have been saying about Litecoin & the entire altcoin market, was right all along.
You will notice on both the fiat & ratio chart Litecoin has now almost run out of bear territory. It will either break support, or the bulls will chase it onto higher ground.
Breaking the ratio support line at this point in time in the current market cycle is nothing new, and it may even be argued that it's historically overdue. But to do so at this moment would also result in a break of support in Litecoin's fiat value! This has only ever happened once, since Litecoin's inception, for but a brief moment during a flash crash way back on the 25th October 2012. This time though the bears have worked Litecoin's fiat value down into this predicament (or opportunity).
With all the FUD out of China at the moment & Litecoin's explosive reputation in upside volatility I wouldn't be surprised whichever way this plays out. The only thing that would surprise me is if LTC's value hits those support lines & doesn't do something explosive upside or down.
Sequel to "Same ratios on this movement" chartIt's still early, but the ratio chart I made () seems to be playing out, so I wanted to extend on it and do some more analysis.
In this chart I cover some more of the similarities between these rallies and what to look for going forward which could give confirmation to this prediction.

















