20 thoughts on “CHARTS OF THE DAY

  1. Li

    Gutsy call, but I like the rationale. I think the easy money has already been made on this move. I’ll let the expert traders squeeze the last few percent here, while I wait to short commodities at the terminus of the Euro move.

  2. luc

    for me perfect target for euro would be 120, you think that there’s a chance for that ? dollar should then move to about 90

    1. gary Post author

      I doubt the euro gets all the way to 120. There probably isn’t enough time left in the cycle for it to move that far.

  3. luc

    after correction, how fast dollar should reach 1:1 with euro in yout opinion ? its a matter of weeks or months ? im talking about final top on dollar, this should happen before end of 2015 or rather in 2016 ?

  4. Bob UK

    It was about 11AM London time on Wednesday that the metals spiked. Same thing has happened again today.

    Is that the time the guy gets in to Canary Wharf, has a coffee and croissant, switches on his computers and buys a chunk of the metals? 🙂

    I may be paranoid but I get a feeling that this is a set-up to get people going long and dancing on the carpet before the rug is pulled away sharply. (Well, that is a bizarre mixed metaphor.).

    1. gary Post author

      Most definitely the rug is going to get pulled out, but probably not until the dollar bottoms. That’s probably not due until the Fed minutes next Wednesday.

      1. gary Post author

        Of course no sooner do I say that and the dollar starts acting like it wants to bottom earlier than I was expecting.

        1. Bob UK

          LOL – at least you have the honesty, and the guts, to say it how you read it. Most lack the ability to do that – especially when they are stuck in a certain mindset.

    1. gary Post author

      Yes, I went long at the open and placed a stop right below 2095 in case it is a fakeout.

  5. Jay

    In other words, now that SPX has officially closed above 2120, what are the odds of NOT getting whipsawed if going long the close?

  6. Roy McIntyre

    Futes at 2117. So the stop is… a close below 2120? What if it opens below 2120 but heads up? What about an intraday break of 2120? I dunno… I can’t take this trade. I want to. In my experience, when cycles start acting broken, it is a sign that something is up. But I can’t.

    Like when gold started having failed cycle after failed cycle… long cycles that wouldn’t stop going down… cycles that topped after like 3 or 4 days… it was all a sign that something fundamental had shifted and the larger gold picture was headed into the toilet. Now I wonder if the SNP isn’t doing that in reverse. This cycle won’t bottom. It has unexpected strength really late. The buying pressure won’t let up. I wonder if that means that we are headed into a bubble.

    If we are, I guess I will get left behind. I just can’t buy this. Not without some kind of sentiment clearing event first.

    1. gary Post author

      You could buy with a close stop. You limit risk and are on board in case the S&P is headed to 2200.

  7. Jay

    I too will wait for the equity bubble to pop, even if it means waiting a couple of months.

  8. Carl

    I am going to be contrarian on this forum today: everybody here is convinced the dollar is just having a temporary pause, based on cycles theory. But there are other theories around as you know. One of them is the reversal pattern. And, within the reversal patterns, one is called “railtrack reversal”, which are documented as very reliable if coming at the end of a straightforward trend. Even more if it is on a monthly scale: the objective of the reversal is the area where the previous trend started. That would be around…80. Somewhere in the summer/fall if market symmetry works:

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