The Dow Jones Industrial Average and Dow Jones Transportation Average are both hitting new 52-week highs.
These are things we see regularly in uptrends. Not so much in downtrends: [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
The Dow Jones Industrial Average and Dow Jones Transportation Average are both hitting new 52-week highs.
These are things we see regularly in uptrends. Not so much in downtrends: [Read more…]
by Ian Culley
From the Desk of Ian Culley @IanCulley
The US dollar isn’t going down without a fight.
Investors weren’t given much time to celebrate the breakdown as it quickly turned into a potential failed breakdown.
Before we get ahead of ourselves, it could simply turn into a hard retest.
It happens all the time.
So let’s check the charts…
Monday night, we held our July Monthly Conference Call, which Premium Members can access and rewatch here.
In this post, we’ll do our best to summarize the call by highlighting five of the most important charts and/or themes we covered, along with commentary on each.
Let’s get into it!
by Ian Culley
From the Desk of Ian Culley @IanCulley
The US Dollar Index’s $DXY break toward fresh lows resembles a defiant crawl more than an earnest march.
An image of dragging my children away from the toy aisle flashes across my mind.
(Actually, I let them walk around the store with their toy of choice. And then, we ditch the item before checkout after a couple rounds of negotiations. It works quite well – no screaming involved.)
But while the DXY drags its feet, the individual currencies that comprise the index are picking up the pace.
The Swiss franc is ripping. The euro is posting fresh 52-week highs. And the British pound is hitting our upside objective.
Our initial target for the pound marks a logical level of resistance.
But since the Dollar Index broke down less than a week ago, could the pound slice through this potential overhead supply zone?
by JC
This is the video recording of the July 2023 Mid-month Conference Call.
by Ian Culley
From the Desk of Ian Culley @IanCulley
The US Dollar Index $DXY has resumed its march toward fresh lows.
It took a less direct route, meandering sideways for the past seven months.
Nevertheless, our roadmap for a DXY breakdown has remained useful.
The EUR/USD is trading above 1.08. And commodity currencies are recapturing their July pivot lows from last summer.
These are key developments that support further USD weakness, leading us toward today’s breakdown.
Thanks to sellers taking control of the market, today’s session is offering another critical piece of confirming evidence…
by JC
While many investors have been focused on arbitrary lagging indicators like the economy, we rather keep our attention on reality.
We’re grown adults. We don’t need bedtime stories to go to sleep at night. So fairytales about recessions, or inflations, or bidens are just not anything we’re interested in.
We get paid to sell things at higher prices than where we buy them.
And the bet we’ve been making for a long time is that the negative correlation between the US Dollar and stocks will remain in place.
That bet has paid off handsomely for us and anyone listening.
So as investors we all have a choice. Do we bet that the correlation is all of a sudden going to change tomorrow? Or do we bet that things just remain the same?
Here is the US Dollar Index consolidating in what appears to be a classic continuation pattern, within an ongoing downtrend: [Read more…]
by Ian Culley
From the Desk of Ian Culley @IanCulley
First stop, Singapore!
Steve Strazza and Sean McLaughlin are headed east on a whirlwind tour of Asia.
I must admit, I’m a bit jealous. And I’m not the jealous type!
They’ll visit seven cities over the course of the next month, meeting traders and financial professionals from the tip of the Malay Peninsula all the way to Japan.
I can’t physically travel with them, but I can live vicariously through their stories and videos, and, of course, my charts… [Read more…]