The USD is a beast!
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That is what rising interest rates will do, This will not help the trade deficit as a rising dollar means our exports will be expensive and imports cheaper
On this subject my Daughter just got back from a trip to Europe where she said going to Pairs Disney was cheaper than going to Disney in Florida. What an upside down world we live in
You take care
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And the high USD will impact negatively on corporate profits/stock market valuations, correct?
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Strong Dollar usually means a weak stock market
Do any of our downunder traders see AUDNZD breaking this zig-zag sideways multi year trend, The current zig is up, could a zag down be happening soon.
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The two economies are tightly intertwined, although NZ mainly sells food and drink while the Aussies mainly sell iron ore and energy (coal and gas). Hence the recent leg up. When the world gets hungry and thirsty the leg will go down.
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Nice rally in Yen pairs today
As I feared, the early rally in stocks did not hold, many went negative and most finished at their lows, this is text book bear market action
That is interesting, can I ask why that is the case?
If this is what you were referring to, Markets rally in the morning in anticipation of a rally, then latecomers buy pushing up the price more but as price stalls, the first group takes their profits and sells, then as the price falls the second group ( late to the party group) starts to see their stop loses hit. If you see a rally on low volume that is a good signal it will not hold.
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I will be traveling this afternoon, so it may be late before my next update
Huge rally in all Yen pairs
Top Trade USDJPY hits another new high
This time the dead cat bounce in stocks held
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Hi Dennis hope all is well, really do appreciate your thread here.
I was wondering if you follow Gold, it looks like it has been gaining strength at a similar timing to the JPY weakness which has been so bountiful the last couple months.
Just curious if you have any thoughts on this development
Have a blessed day!
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Hi Dennis
Do you hold over the weekends or do you close all positions on a Friday?
Thanks
He holds his trades from what i can tell. He has a few massive 1000+ pip winners like that USDJPY one.
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This strong weak strategy is really good. I have a general question for anyone following so I can get some different answers as everyone will do this differently…
Total account market exposure at any given time? What is yours?
So for example, lets say you have 5 trades on at the same time using this strategy, at 2% risk per trade, that means that 10% of your account is exposed to the market and if all your trades lose which happens, you will lose 10% of your account in one hit.
What are peoples rules regarding this? How many trades at any given time is your maximum and what is your maximum level of account exposure at any given time?
Thanks all
Thanks for that. I am building my trading plan for this strategy, I am not sure I like holding over the weekends, do you hold over weekends?
Cheers
I trade long term, so I might hold through multiple weekends
I would recommend (using your 2% per trade), only one position at a time, if you want to hold more, wait for the first to be far enough in profit ( over 100 pips) that you can place a breakeven stop, this way you can add a new trade and never have more than 2% of your account at risk, Your odds of going bankrupt on such a money management system would be very low
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Hi Dzap
I do follow Gold, I own Gold, I wish the money I have had sitting in Gold the last 10 years I had put in Bitcoin, but that is another conversation
Gold has been on an uptrend, be it a weak one, and it is well down from its March high. If there is a correlation between gold strength and Yen weakness, it is a pretty weak correlation
that is my take, you take care
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It is all about the US dollar
Newest Top Trade NZDUSD has already hit 100 Pip
Our dead cat bounce lasted one day and the market took back all of Thursday’s gains and then some. I would look for a deep selloff on Monday morning, then maybe we get an oversold bounce in the afternoon.
This Bear is real, and here to stay for a while, so protect yourself
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