Look at the US Dollar Index overlaid with the short ETF for the S&P500.
In other words, when the blue line goes up, that means stock market shorts are making money (along with rising dollars). But when the blue line falls, that means the shorts are losing and people who own stocks are the ones making money (with dollars falling):
Markets continue to churn sideways, frustrating most investors.
Instead of allowing the market to dictate your emotions along with the herd, let it simply highlight the path of least resistance. That’s what I’m doing.
Today, I want to share with you two ways to trade the British pound – regardless of its next directional move…
The structural trend for the pound undoubtedly points sideways. A zoomed-out weekly chart makes that clear:
Yes, it has reclaimed a critical shelf of former lows. But it’s messy. And while I believe the pound and other currency pairs will begin to trend in the coming weeks and months, I have no idea what direction they will take.
So I’m prepared to trade the British pound in either direction.
Earlier this week we held our February Monthly Conference Call, which Premium Members can access and rewatch here.
In this post, we’ll do our best to summarize it by highlighting five of the most important charts and/or themes we covered, along with commentary on each
We held our February Monthly Strategy Session last week. Premium Members can access and rewatch it here.
Non-members can get a quick recap of the call simply by reading this post each month.
By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends. This is easily one of our most valuable exercises as it forces us to put aside the day-to-day noise and simply examine markets from a “big-picture” point of view.
With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.
It's the weekly currency edition of What the FICC?
Despite the overarching range-bound action and intraday indecision across the currency markets, I continue to find trade setups with well-defined risks.
