Friday, April 28, 2017

Dollar Index Bends

But so far, it has not broken!

The large gap to 99.73 will likely be filled soon.  After that, the last solid Dollar Index strength is a potential E-Breakout from another declining wedge pattern.  Although the secondary uptrend line gave way, the primary is now holding firm – near the top of the Trump election spike.

FED Rates and the Jobs Report characterize the upcoming week.

Stay Tuned!

Friday, April 21, 2017

French Election Connection

Significant Dollar Index strength was signaled in late March by the declining wedge E-Breakout pattern which had closed the big downside gap left over from 2016.

On Thursday, a down day for the Dollar, an uptrend line from last year held firm and augmented the E-Point by morphing it into a simple ABC pattern C-Point. There are also two intra-day upside gaps likely to be filled sooner rather than later.

The French election process may somehow negate all of this power, but for now, the Dollar is strong.

Stay Tuned!

Saturday, April 8, 2017

Another Gap Play

War fears: Gold spurts!

One reaction to the American missile attack on Syria was an immediate spike in the Gold price.  Such synthetic moves usually correct back to reality, and the results of this beginning to happen occurred soon after the markets opened on Friday morning, setting up a good shorting opportunity.

After a big gap-down open, JDST bottomed at 13.00 even, nearly a dollar below its previous close, in a declining wedge E-Breakout pattern (thank you Bill Morris, rip).  A retest buy at about 13.10 {stiff stop 12.99} was followed by higher highs and higher lows until well above 13.94, the previous day's close.  A shooting star top terminated things, but not before over a 12% rise.

Stay Tuned!

Thursday, April 6, 2017


Dollar-Yen Volatility on FED Minutes Day!

During pre-market hours on Wednesday, the Dollar gapped up significantly against the Yen, as its Index clearly shows.  Most .01 Dollar Index gaps will be filled within a week or two, if not sooner; but this one was 4 times that size and could be counted on to close in short order – which it did, while setting up various long day trades in Gold (currently inverse to the Dollar).

JNUG opened gap-down, recovered somewhat, and then continued even farther down, to the day low of 6.35, not long after the 2pm chaos surrounding release of FOMC minutes from the FED's March 15th meeting.  A retest buy at about 6.45 {stiff stop 6.34} proved to be a more than 8% winner, with the simplest of sell signals: the Dollar gap closed!

Stay Tuned!