Short Term Technicals – Yellow Light

The past two days of solid USD strength have created a couple of concerns on a purely short-term technical level, as well with extremely light trading volume all week and the G20 meeting wrapping up here tomorrow – let’s just say..I’ve had better.

With a number of mixed signals across asset classes, the SP 500 pushed to its highs, gold / silver taken directly to the doghouse and the Yen rolling over ( or not) – it’s just as well to clear the deck, clear one’s head, regroup and read up over the weekend.¬†Interestingly my heart hasn’t really been “in it” here this week – and as a result my trading has suffered. I took my first small weekly loss in months, and will chalk it up as yet another lesson learned. You can’t turn your back on this thing for a second – short of having your pocket picked and or face blown off. I know this….you know this.

Looking ahead – we will get whatever “news” out of the completion of the G20 meetings, and prepare for another week out on the battlefield. At risk of sounding like a broken record – I still have little belief that any “USD rally” will be anything more than a blip – but of course stranger things have happened.

Thankfully my short-term technical system has again done it’s job in keeping me nimble and not tied to any particular trade / concept. We’ve considered this a near term “top” – so regardless of what further upside may be seen – I will be stepping lightly in following days.

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