Trading the Trend with Strong/Weak Analysis

Getting some consolation with CADJPY (118 pips *2), but geez, GBPJPY doesn’t stop :S

Just letting you know that I’m still looking at EURCAD Dennis - waiting for the day when CAD appears green for most pairs. That’ll tell me then how strong it is against EUR relative to other pairs.

long NZDJPY might be my next play.


Yen pairs were down most of the day then last 4 hours of trading saw some pretty good reversals, I will have some charts to post later tonight

most indexes closed the day with pinbar ( some call these hammers) reversals. Here I am looking at the DJ Transports, this is the only major index to be above it’s 50 day moving average, see how price pulled backed, tagged the 50 dma and moved higher, this two day pull back has also been on lower volume, this all points to a move higher from here,

CAD leaps into the top spot today, weakness across the board in Yen

Yesterday we had this nice pinbar reversal off of support in USDJPY, so I took a long position last night, doing well so far and with today’s up candle we now have a 3 candle morning shooting star which should keep this up moving going for at least another day,

Is it time to go long EURAUD, price has been sitting just about the 200 daily moving average, if you go long here a daily close below that little pin bar candle from Tuesday would take you out of the trade. Profit target would be above 1.6000, that is a great risk vs reward

Here is update to my USDJPY trade, looking at the 1hr chart we see price had been held back by the 200 ma , we have now broken above that resistance, old resistance no become support, so as long as we stay above the 1hr 200 ma I will let this trade run, stop is at break even so I can just enjoy the ride

Here is my newest market review video, FXCM has my trading platform down for maintenance so I cannot post my SW ranks, I will get them up tomorrow

If you like what I am doing in these videos please subscribe to my channel , comments are always welcome

Another day another reversal, this up and down action continues, No reason to chase any of these moves

After being very over active trading in January, I took a step back and did very little trading in February only closing out 2 trades vs over a dozen in January, the back and forth consolidation we have been seeing has had a lot to do with this. My Goal is to grow my trading account and for 2016 I have closed both months this year with gains. As some of these consolidations break out and turn into new trends I plan on being along for the ride and until then preserving capital is first priority

Yesterday we zig, today we zag , Here is last 4 days of my SW , the whole currency market is in a up down up pattern , the lesson here is do not chase these moves

Looks like the strength/weakness ofJPY is fluctuating relative to everything else staying stable - kinda like a moving pendulum on a grandfather clock. Interesting times. Is that how you would read the market?

The other explanation is that all the trends around JPY is moving in unison while is JPY staying put. Somehow that’s harder to believe…

CAD hangs on to top spot for 5th day but Aussie is on the move

I am just seeing a lot of up and down action, there are a few slow moving trends, look at EURUSD. the key here is not to buy anything after a big move, odds are it will go the other way the following day

Here are some important 200 day moving average crossings, first chart is AUDUSD, after hitting a multi year low in January AUDUSD has been on a 7 week rally and today has topped the 200 dma for the first time since September 2014. We now need to see some follow through but if price can stay above the 200 I will be looking to get long this pair on a pull back. Chart two is EURAUD after spending a week sitting on top the 200 dma price yesterday broke below it and today we had very strong follow through, here I will be looking for a weak pull back to get short

Weakness in the Yen today,

note; US non farm payroll tomorrow, this tends to rock US dollar pairs

Here is my latest video, if you like what I am doing here please subscribe to my YouTube channel

Here I am looking at the US dollar index daily chart, after hitting a high in early December the dollar has slipped into a pattern of lower highs and lower low’s. Last week it would appear we just put in another lower high, that could mean a new lower low is on it’s way. Shorting the US dollar against something like a strong Aussie dollar might be a short term ( two to three weeks) play

Of the 8 major stock indexes I follow ( SP-500, Nasdaq 100, Nasdaq Composite, DJ-30, SOX, SP Mid Cap, Russell 200 and DJ-20 Transports) Only the SOX ( Semiconductors) is above it’s 40 week moving average. The rest of the market could do the same in the next week or two, this is also a place where reversals can happen. If all 8 indexes can get above that 40 wma, then we should have a healthy move up from here and possibly some new highs. If we start seeing pinbar ( hammer) reversals then look out below. The continued strength in commodity currencies ( AUD, NZD & CAD) will depend on more 40 wma breakouts

After a two week pullback Gold is back on track making new YTD high, Gold in just two months has gotten back all it’s 2015 loses , it is now setting it’s sight on high set in January of 2015, if it can clear that this has lots of room to run. Traders who did not panic sell last year are being rewarded for their patients

Hi Dennis

What do you think of AUD/JPY? They seem to have an inverse relationship with each other. If commodities head higher and market risk appetite is higher, would the JPY head to the lowest ranking while AUD heads to the top spot?