Don't Get Fooled Again – EUR Is Going North

Listen……….

The $dxy (or symbol:$usd) tracks/charts the U.S dollar against a “basket of currencies” where 57% of that basket is weighted EUR – and the remaining percentage is broken down as follows:

http://www.fxtrademaker.com/usdx.htm

Often… traders will watch this symbol, and make assumptions as to the dollars strength or weakness based on its movement.

BUT……………..

When looking at individual currencies independently – “against the U.S Dollar” one can see that this is by no means accurate – and in my opinion…..extremely misleading.

I see the $dxy at 80.05 presently ( up +0.14) – which would suggest dollar strength – right?………RIGHT?

Then why is my screen “so deep in the green” when I am short the U.S Dollar?

HMMMMMM……………

BECAUSE I AM SHORT THE DOLLAR AGAINST EVERYTHING UNDER THEN SUN….”OTHER” THAN THE EURO!

AUD ┬ákillin it……NZD killin it………CAD killin it.

So….You get it?

Don’t get fooled…the dollar is goin down….down……down.

4 Responses

  1. Schmederling November 1, 2012 / 6:23 pm

    Nice…. well done…. I exited all my ACI position recently… 15000 – @ 8.41 – $8.42 waiting for a good entry point for SLV… any suggestions?

    • Pot Stock Watch November 1, 2012 / 7:12 pm

      Its very early here in the gold /silver turn so……….short of this entire thing taking some “surprise move” lower (which I dont see being very likely) I would more or less suggest making that buy any time.

      Ive got the last of my gold orders in…..and am just waiting to get filled.

  2. Schmederling November 1, 2012 / 10:37 pm

    Gary is great at call bottom’s I better get in before the PM run jumps… cheers

  3. Pot Stock Watch November 1, 2012 / 11:35 pm

    Cycle theory / analysis (in my view) is absolutely one of “the most reliable” methods of market navigation.

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