This outlook has worked out brilliantly. USD pulled back, especially against the EUR, AUD and GBP. With the way the AUDUSD is on a tear I think this USD pullback will continue for another 3% or so on average versus its’ major peers. I still consider AUDUSD, EURUSD choice instruments to sell the USD.
S&P 500 chart looks very prudent to sell target $3,000, quote $3,216 for a whopping 7.2% difference. Duration 2-8 weeks.
EURUSD performed brilliantly in the past 5 days since that was posted. Quote 1.22 from prior quote 1.11.
Now is a good time to take profits short USD, too.
January 7th 2019, 5 days since previous reply and quote above
The USD rebounded a solid 1% in the past 5 days versus most majors and now it’s time to make re-entry into this high probability opportunity to Sell-USD considering how strong the performance of Gold has been versus the US Dollar despite the rebound being complete. This also means that it’s probably a very good time to take some profits on gold positions quote $1,571 XAU/USD.
A related outlook to diversify is the Swiss Franc as a counterpart to sell with the US Dollar. Favored currencies to buy versus the Swiss Franc and US Dollar are the Australian Dollar and Euro with a relatively tight time-frame of around 3 weeks. Leverage limits would be wisely set below aggregate 5X-equity.
I anticipate there may be reason to increase Sell-USD positions by diversifying with exotic instruments such as USDNOK in approximately 2-4 weeks when prices are more favorable in the short-terms as exotic instruments rallied against the US Dollar in the past 6 months, as I mentioned was a probable scenario in other threads many months ago and it appears likely this reversal-in-trend will continue and complete.
Bullish BTC/USD to $10,000, quote $8,129, await entry to short-sell until rally is finished, my expectations for the rally to top close to $10,000 before March.
That’s not a buy suggestion, it’s a wait to sell suggestion.
It looks like the US Dollar hasn’t finished (in many cases it hasn’t yet even begun) rebounding against non-major currencies as related to the expectations and speculations posted January 7th, 2020, 7 days ago.
Yet my confidence in the sell USD+CHF / buy EUR+AUD trade idea has increased since I originally posted the trade idea, 7 days ago. I think in a few weeks to a month there will be an opportunity to expand the hedge to more instruments. Until then I’m anticipating a intermediate rebound in the USD versus the Chinese Yuan and exotic currencies like the Russian Ruble with a magnitude of around 2%-4%
Now looks like a good time to buy GBP and JPY vs. USD and CHF, especially because downside seems much more limited than usual for GBPUSD at this time being so far below 2.0, quote 1.302.
Buy GBPCHF
Sell CHFJPY
Buy GBPUSD
Sell USDJPY
The duration 1-6 weeks.
I’ll make a thread for this whole sell USD+CHF trade idea and link it to this thread.
The bear market will almost definitely be a recession. I anticipate a 10-year period of suppressed growth and profit margins in most major western markets.