looks like a period of consolidation
Big down day for the NASDAQ, could this be a short-term top
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Another week in the books with the DOW having a breakout week, while the NASDAQ finishes with a bearish reversal. Currencies seem to mimic this same sentiment as all currencies except NZD were up against the yen, indicating a move to risk-off status. One week does not make a trend, next week should give us some clarity
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Big gains for Yen pairs send the Yen back to the basement, Stocks chose to not participate in this rally so we may have some divergence in play
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According to Ken Fisher, the last time the market has had a down year in a president’s 3rd year was 1939
It has clearly been a good rebound year for stocks, and we could see all of 2022’s loses erased
Stay the course
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Markets continue to shift into Risk-Off mode
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Huge down move for Yen pairs
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Sudden appreciation of the USD took out my positions on Thursday which had looke dhealthy up until that point.
Now I’ll probably be sitting on my hands until Tuesday or Wednesday waiting to see if the dollar continues strong and which currencies emerge where. Grrrr.
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Some mixed signals last week but the CHF continues to hold its own
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Risk-on currencies are having a big day, put look at the major stock indexes, all under 1/10th of 1 percent
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a late rally in stocks made for an all green day to close out July
CHFJPY was the only yen pair up for the month of July
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Mixed day with a bias towards risk-off
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First day of August and seeing a lot of red, as I have said before August and September are often down months, could we be seeing the beginning of a meaningful late summer correction
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Down day
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Mixed week for Yen pairs and they all finished near their weekly lows
Stocks had their worst week since March, Lots of people calling for a market crash, the problem with that is markets seldom crash when the majority is expecting it
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I have seen those sheets where there is a line connecting the currency to chart its’ path and I thought, why not use color codes?
This is what I developed; your thoughts?
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And then, looking at that, I had another idea, why not tally the top 3 Strong and the Top 3 Weak currencies? That would reduce day trading selections to 9 possible pairs, and even less if looking for a day trading option on an existing Dennis signal.
Most statisticians agree that the minimum sample size to get any kind of meaningful result is 100. However, here is the previous data which has only 25 entries. What do you think? Is it valid? Can you use it to hold a position or enter in the direction of an existing trend?
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Hey @FOK It’s whatever makes sense of the chaos theory that is currency strength and weakness to YOU that is the most important factor.
Condensing the possible tradable pairs to 9 (from 28) is definitely a solution for streamlining the decision making process…
It’s become obvious watching and trading this strategy over the last 3-4 years that the “markets” are watching as well… Hence the directional flux when a new pair is displayed by this SWA formula that Dennis has been diligently collating for many years in this thread…
As I displayed a few years back in this thread, I trade the middle ie: 2 against 7 or 3 against 6… So long as there is a variation of 1.2%+ and an increasing percentage differential…
28th Jul - EURNZD for a Buy
31st Jul - GBPJPY for a Buy
1st Aug - AUDCAD for a Sell
2nd Aug - GBPNZD for a Sell
It gives the positions some room to expand… Before hitting the wall at position 1 and 10…
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