Dollar Breaking Down

[alevin]

been looking at the UUP weekly charts. Only positive I see is the doji.
http://stockcharts.com/h-sc/ui?s=UUP&p=W&b=5&g=0&id=p28289204338.

could be another 4 weeks of down/sideways (relative to closing-4 weeks prior), based on DeMark system-unless we get a real reversal candle. I'll wait til see more clarity.

 

[Bullitt]

Sorry, but the link above might be busted so here's the actual upload. You'll have to sign in to view this version of it. We currently sit at 3% bullish sentiment on the dollar. Bullish sentiment was at 7% in July 2010 and 7% again in 2009 when the dollar went on a bull run.

View attachment 10088

 

[Bullitt]

All headlines of deficits, gold, inflation, and housing are factored in to the market. Do you believe you have an edge trading because the headlines say that some genie in a bottle will unleash a bullish blue blaze of QE on anyone who dares to speak bearish on the markets? Another question to ask yourself: Who's telling us to buy gold right now? Is it somebody who maybe bought it a few years ago; or is it somebody who bought a few minutes ago? Either way, the greater fool theory is in full effect as blind bulls compare the P/E of AAPL (20) to that of AMZN (60) and believe AAPL to be undervalued.

What ever happened to buy low, sell high? I think that opportunity is presenting itself in the chart below.

 

[tsptalk]

Good stuff Bullitt. I was thinking the same thing, as all 3 (stocks, the dollar, and gold) need breaks from their recent moves. But I seem to get steam rolled when I step in front of these trends.

 

[Bullitt]

I'm of the opinion that a major short covering rally is in the works for the US Dollar and could begin any day now. When that happens, bye bye stocks and gold bugs. That drop two days ago in gold was not "profit taking" (another term dreamed up by a broker to make selloffs sound safe), that was the sweet red bar of leverage being unwound by big guys and passed off to the little guy on main street.

The complacency is getting extreme once again with the VIX and US Dollar Index reaching very bearish levels. How about this chart below? TED Spread and SPX both up on the same day. While this is no way a trend, it's something to keep an eye on as it is now above the April high. Meanwhile, as Ireland falls into a sinkhole, Greece's problems still persist.

View attachment 10062

 

[Frixxxx]

Uh, oh!

Only reason the market's green right now!

 

[tsptalk]

Uh, oh!