But one thing i did NOT see at all, and called wrong, was the U.S. Dollar falling off this hard...WOW.
The dollar was down 1.8% today.
Crushing the dollar = Stock Market rises *pretty much* (commodities go up...brings market up with it)
Yes, it's a fake way to push the market higher, but it's to be respected and traded none the less.
Fear of inflation? I personally don't see it anytime soon, but we shall see.
If Bob Smith owns a stock today that went up 1.7%....well Bob Smith's net worth was decreased today. Kinda sucks for Bob, don't it?
But anyhow, all that matters to me, is a trade set up.
We have one here, a VERY good one, on gold/oil. (dzz,dgp,gld,uso,dto,dxo...pick your poison)
I'm not calling a "swing" bottom to the dollar or "swing" top to gold/oil.
But I am leaning towards that.
I put some annotations on the dollar, gold and oil charts.
In regards to these charts. So instead of making a "call" that gold and oil sell off hard this week, which I do feel is the more probable trade coming this week. There is no need to call something before conformation.
Unless it's a total mini-dogi day across the board everywhere on Monday, I believe the direction will be decided on Monday, and the trade will last for the entire week. (from my experience of breakouts or breakdowns from a 60 min chart rsi wedge of that length/size)
Just let the chart tell you which way it wants to go, b/c it is going to, and when it does, there is going to be enough meat on those bones (long or short) to run it for the majority of next week.
Remember Stochs can stay pinned up or down for a very long time. (we know that from this rally!!! and from last year's crash too)
To me, by far the best signal is the RSI wedge (especially on gold, that is a very coiled and pretty wedge there, I can't wait to trade the hell out of it)
Wait for the RSI wedge to breakout or breakdown, and then jump aboard for the ride next week.