higher dxy
real rates spread increse => pressure on gold prices?
bearish for across the board EM assets
terrible news for etf managers
china to start thinking about all the 1.3 bn usd worth of almost 0 yield US papers they hold
imf and wb funding become more important => sharing policy making decissions with the west again
....
for the sector, it means importance...
Overbought oversold signals are pretty important when entering a trade, i mostly use it to decide on the position size.
but, it can be seriously misleading in strong trending markets and cause massive losses when used alone.
you can see the massive rally btw 1997-2000 after RSI signaled overbought and kept making new lows...
i was lucky to spot the good entery level at 34,00s (see previos ideas posted) its been a good run and i felt the need to update the idea.
intraday chart forming a bearish heand shoulders formation at top. also there is a decent flag formation at the right shoulder.
the way i plan to play the chart is: although how bearish it looks dont get carried away and buy...
IT WAS A NICE RUN SINCE 2016 FEB BUT....
EM assets are under a lot of pressure, given the enviroment I think this is the best chart to keep it at top of the screen.
Buy above 8.15 and ride it!
here is a LT channel of dxy index. set up resembles the one in 2011. time frame here is a bit too long to show the way for the short term trades yet good to have a look....
Pause for a second and check this out. the most significant correlation btw the yields and ccy is changing (or already changed). higher yields lower dxy tells me that the investors not only selling US papers but they are also taking their dollars back home.
chart attached: bars US10 yields, green line DXY, blue GOLD.
markets started to treat US assets like an EM...
the stock has been underperforming the markets since the days of homoerectus.
for a good reason tho... but thats another topic for fundamental guys, we stick with our charts for the moment....
after dipping 20% without any correction the stock is trying to find a bottom arround 7.10s.
can spot the bullish divergences on mom indicators.
prepared for a long trigger here.
Petite bullish divergence in BITCOIN for short term punters. buy above 7750, if lucky we touch 8200
must have a tight stop loss and stop profit as strong trends like this never flip easy.
