The forex and futures markets will provide bountiful ways to trade a weakening dollar.
Unfortunately, some of our initial attempts to capitalize on dollar weakness have fallen flat.
We’re not surprised – especially since market conditions remain challenging. But that won’t deter us from moving forward and finding the best trade setups.
As always, a viable trade comes down to two critical components: a well-defined risk level and a risk/reward profile heavily skewed in our favor.
And, of course, you know how much we like relative strength.
That brings us to a vehicle that challenges the definition of "currency."
Contrary to popular belief, I don't know what the market is going to do next.
I have no way of possibly knowing if the S&P500 is going to double from here or if it's going to get cut in half. Gold can go to $5000/oz or $5/oz. Crude Oil can go to $250/barrel or $2. I just don't know.
We all have our 'opinions', sure. I mean, how can we not? We're humans right?
But we're making decisions with unknown information.
The 2020 V-shaped recovery has warped investors’ brains.
But this is nothing more than recency bias. In reality, bottoms are a process, not an event.
Don’t fall victim to what’s easy or comfortable. Instead, let’s focus on the facts.
Markets continue to send mixed signals, testing the resolve of even the most disciplined investor. Rather than fight the trend or trendless nature of the markets, I prefer to identify evidence that supports the next directional move.
And there’s one insightful chart atop my deck regarding the direction of the US dollar.
Monday night we held our November 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