Market was lead by GBP with USD and Yen weak
Stocks and oil took a hit today that means bad day for CAD and great day for Euro and Yen. Still my strong weak rankings shows a market that is continuing to contract. Adding new positions right now would be a guessing game, I prefer to wait for a market with a clear direction
Today was all about the decline in the US dollar,
You goldbugs out there need to take note of the GDX- gold miners index, this has been in a 6 month bottoming pattern and if gold is to rally, GDX normally leads the metal higher, todays move up 7% and cleared resistance at 15.00
More pain for US dollar and stocks look like they have found a bottom
Yesterday I posted daily chart of Gold miners ETF, today we had another 5% gain. Look at the volume last two days. I would say someone knows something and they are loading up on this ETF
USDCAD gave us a pinbar reversal on the daily chart, USD has been beat up pretty good this month, a rally is do, if we do rally up from here watch for price action at the 200 ma on the 1hr and 4hr charts, rejection of the 200 ma in either time frame could mean an end to the rally. If price blows through both moving averages then we could resume long term trend
Just go and hammer…suck money.
Stock market down, Yen up, that has been the story in the early part of 2016, the last thing you want to do is chase any of these one day moves
Another gap open higher for the Gold Miners and look at those volume bars. If this move does signal the end to the 4 year bear market in Gold and Silver then we should see a low volume pull back soon, that would be the time to buy
CHF surges on the day
Top Strong weak trade, EUR/GBP
Another ruff day for the US dollar
USDJPY is now top SW trade, after a rejection of the 200 day moving average USDJPY has dropped 900 pips
So far this year we have had 11 pairs make the top SW trade, only three currencies ( JPY , EUR & CAD ) have been ranked #1, 6 have been ranked 8th ( USD, GBP, CHF, NZD, CAD & AUD) This all demonstrates just how volatile the markets have been, not a great environment for trend trading , so be patient and if you do trade , keep you positions small. This phase of the market will pass
Another huge day for Gold and Miners , look at those volume bars
Yeah, high spikes like oil the other weeks. Do you plan to trade the volatility, or will you let the dust settle?
It’s been a tough few weeks. Are you out most pairs?
Yen widens it’s lead over all others
I took profit on half my USDJPY at the 200 ma then was stopped out at break even on the rest, in hind sight I am going to look at this chart a kick myself for not going short when price rejected the 200 ma.
There is a lot of panic out there as can be seen in the spike in Gold, it might be a good contrarian play to bet against some of these moves as they are not sustainable, it is just a matter a picking your spot and enduring some early looses as picking the bottom is unlikely
Ah yes, hate when that happens. At least you’ve entered the weekends with a profit overall. Hate to be the one that shorted Gold over the last two weeks.
Based on your experience, how long do you think JPY retain its strength if we assume that some of the world economies go into a bear market/recession?