Thursday, April 6, 2017

GAP POWER

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!


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