What a web we weave. The dollar had a nice productive pullback from its recent test of resistance, is above major support at 75.25 and appears ready for lift off. While the USD/CHF (US Dollar/Swiss Franc) setup a flag for continuation of its move. The equity markets want to pretend that this whole thing is not happening…Gold and Silver are playing out as expected (Zerohedge was wrong again and does not seem to understand the problems embedded in the precious metals markets) with Oil the lone standout. Oil will fall too and much lower than nearly anyone may be expecting.
So, they are squeezing the begeebees out of poor shorts that used to be longs and don’t have very much money left. The best place to short is when all the shorts are forced to cover…this is where I like to short and today was no exception. I am expecting follow through on the dollar and a fairly dramatic one at that. Additionally, the markets may try to fool around up here…but I doubt it will last very long…but its not good to get excited about higher levels to short in a market where the EURO has put in a divergent asymmetrical zigzag off the lows…the pattern is weak, weak, weak.
The character of a good bear market is powerful rallies that close at the highs of the day…people swear they have to go higher, that they will go higher…but its a bear market remember.
2 hours ago
