Tuesday, November 9, 2010

USD in focus

As I wrote in my recent post, this all rise is nothing more than a financial manipulation and it's power is an artificial dollar weakening.
USD followed it's scenario, I still dont touch my USD chart I made weeks ago.

It seems this range is critical for FED and makes an attempt to save falling dollar.
Market took a strong revenge on this attempt, and I feel, if FED would like to have some improvement, they need to let USD fall.
And they will. Just a matter of time.

As you can see, we have a weakening bearish cycle in dollar.
Will this continue or not? Let's see the 2-days USD chart:

Taking a look to 2-days USD chart it's almost sure, this bull attempt will fail.
In turn, market will have new and fresh momentum and PM will recover.

taking a look into 1-day RUA we still have safe bull

And what a heck happened today with the bear elimintation?
It became a double:

Whoever wants to enter, needs to wait to have this bear exhausted and check how strong is the bull cycle. Then gradually it's possible to enter now, but I personally preparing to take profit and get out for a while.

Gold miners have nice bull-setup, however today's extreme volume at sell is a signal: smarts performed a serious profit taking. It does not mean that gold and silver will fall from now, it's rather means big guys are in and periodically take profits. I am repeating: PM is super-volatile. If you don't have good stomach to see your  last 3-5 days of gain ereased, then don't go to this field. As I told I will take profit soon.
At the moment MVO runs out of steam I will start to take profits.

As you see above, XAU is still bullish. Please be noted sometimes I'll use Heikin Ashi sticks. It's especially great in doubts to use this. What MV made is to make a day green if HA is positive, even if it was a red day. That's not a good thing, as it can mislead analysts.

Repeating: smarts take profits in waves. Now soon we will have picture about resistances and can have some strategy about the future. DONT TRY TO RIDE ALL SQUIGGLES.

I know, after a day like this it's hard to believe there is up and we are in bull, but I only read charts and listen what market tells. Personally I will sleep well and happy to keep my stakes in for the next few days.
Day after tomorrow I might perform a profit-taking.

Good luck!

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