Forgive me if I sound like a broken record.
What I find particularily interesting is the continued “blind faith” that things just keep going round n round / up forever – and that those of us with near term bearish views have lost our minds.
Making money is the obvious point, and trading in a single direction has never made an ounce of sense to me – as we call this trading! If had any kind of emotional connection / view / bias in “favor of direction” of a bunch of numbers on a screen I’d imagine it quite difficult.
My views on humanity are bearish, with focus on leaving this planet – an imperative.
I imagine that a number of astrophysicists focused on the same, still manage to get up each morning and enjoy a good cup of coffee, kiss their wives and children good bye, walk out the door with big fat grins on their faces and enjoy their days – despite their knowledge of how screwed up things are.
I’m long interstellar travel……..and STILL short USD.
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“Being crazy isn’t enough.”
― Dr. Seuss
Do you cover at the technical breakout if UUP goes above $23?
Not this gorilla no lol.
The long term series of “lower highs” in USD is unlikely broken here as each and every time we near it – further QE shuts it down.
The move above “84.09” in $dxy pissed me off for sure – but has now been contained.
I’m still of the mindset the dollar makes a considerable move lower here – which (if you’ve been following along) looks about right with a correction in stocks – as the two are now clearly moving in tandem.
As well – my short term tech has now signaled an entry “Long JPY” in approximately 36 hours ( the system look ahead not behind ) so…….if you’ve any belief that the Nikkei will correct (which of course I do) as well the Yen (which I do) – this shit doesn’t exist in a bubble.
SP will correct right along side as Japan is in the drivers seat – not the U.S
Well said ma man – well said.
gorilla man.. who do you trade forex through/recommend?
I trade with a smaller outfit out of Canada but would rather not slap it up here on a public blog.
Otherwise……I am currently researching / reviewing a number of others. Sorry – I’m not much help here, but do appreciate its tough to find one you’re happy with.
How do you keep track of changing broad market correlations? Is it at all quantitative, or is it just from staring at the screens all day?
You mention how equity markets are trading in tandem with the USD. True enough, but in the not so distant past shorting USD into an anticipated equity market sell off was madness.
I find trading on correlations to be difficult. Not only are the correlations themselves constantly changing, but the time frames they exist on as well. On a long enough time frame nothing is really correlated in the market. And then somewhere between that and a tick chart exists a correlation that may be exploited.
Props if you can successfully do it by just looking at the screens all day.
Hey Tonka.
Keeping track of the ever changing market correlations is always going to be tricky, but with a good grasp of the fundamentals as well as good technical trading ability – things do come together. The current environment is extremely challenging so don’t beat yourself up about it.
I tend to take a “top down” approach as with forex “the big picture” is the most important part. The medium term can be the real bitch for sure – then you’ve got you technical entries and exits on the smallest of time frames.
Areas of horizontal support and resistance on long term charts offer great places to “map” and “oh so interestingly” you’ll often find something “fundamental” pop up in the news as these areas are challenged. Funny how that works.
I don’t “trade correlations” but use them moreso as a road map to help me “confirm” or “disprove” a move.
I totally agree that the time frames / turns are tough – so you’ve really got to stay on top of it. I am constantly reading and researching any given country at any given time – always looking for “hints”. Getting ahead of it does take time and energy for sure.
As well keep in mind – weeks can go by without me placing a trade if things aren’t lined up the way I like.