Thursday, October 14, 2010

10/14 10:30pm

Reviewed the dollar's technical composite and I have a reading of +17.  This is the close-your-eyes level which has signalled bottoms in every case since the dollar index began in 1985.  I'm going long the dollar index at 77.91 and will increase this when dollar index breaks it's 90-minute M/A to the upside.

Notice also that today's close equaled the wave 2 bottom of the 5-wave advance that began last November.
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2 comments:

  1. AnonymousOctober 14, 2010 at 9:31 PM

    I advised a client to start moving some of their long/mid term forex holdings back into dollars, and it looks like the message is taking hold as the first 5% went through today.

    I started shorting financials (XLF puts) in late Sept and got aggressive with it yesterday. Great timing, But as usual the trick with profitable options is timing the exit. A little overloaded on SPX puts at the moment, but I can hold through next week without too much theta burn...

    You've still got one of the best trading blogs around. Best to you and yours - shabs

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  2. AlesundOctober 14, 2010 at 9:35 PM

    Hi Steve,

    I just discovered your blog and want to thank you for sharing all of this wonderful information with us. Your blog is one of the best I've come across.

    You just mentioned that silver is a strong sell at -20 on your indicator. Can you comment on gold? Every Joe and his uncle are bullish on gold and bullish sentiment must be in the high 90% area.

    Thank you!

    Neil

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