In my humble opinion, I feel the currencies are worthy of watching closely, due to the impact they have on so many different asset classes. Below is an update of the U.S. Dollar around 10:30 a.m. Central time.
Dollar is attempting to break from a “bullish falling wedge” pattern at (1) in the chart above. So far the break looks good! Please be aware though….”that one day a new trend DOES NOT make!”
If this trend is correct, Commodities could come under sizeable pressure! I harvested some positions this morning, yet want more proof, before attempting to score on defense in the Commodity complex. If the read is correct, SMN will be of interest to own. If a Dollar rally really is underway, more upside will come, since the Dollar has declined over 15% of late.
Chris,
I love your big picture approach with many indicators painting their own picture.
I agree that USD is the key, please provide weekly updates on this chart, as it is great indicator for stocks (in this environment).
Thanks
Looks like we’re testing 1150 sooner than later. i was really hoping 1170 would hold today, but hope isn’t a good trading strategy. My mantra of “i won’t short the market near or around GS’s earnings” is being tested. What ever happened to a market/USD rally?
Great call – N100 as advertised and the USD as advertised
Chris: Please clarify SMN is symbol for July Soy Meal and is also symbol for Proshares Ultra Short basic M (not sure what that is), FYI Bot the SH with you today. Thanks for the tip. Let me know about the SMN deal.