Oil and Key Markets....
This week of the beginning of September should see volume return to the markets after a summer of lower volume and smaller price swings.
I don't see much changing in the scheme of the trends in place. While this is indeed a good place to short the EUR/USD I don't expect any major moves down and nor do I expect any major moves up in the Dollar any time soon. I alerted you to these changes in trend a few months ago and I have been on the money. Stocks will continue to move sideways to up. Buying the dips are still the way to go until it isn't and there is no indication so far that this trend will change. You hear the talking heads with their constant yammering of trying to predict market tops and bottoms. It is not easy for the best traders to do it so why would you take some idiots advice that believes every pitch of hype that comes across their desk.
The Dollar may have bottomed though for the time being. I think that further downside is limited for a few months at least. That should keep everything else rather rangebound as if they hadn't been rangebound enough as it was.
Oil may have the potential for a nice move to the upside if you follow the ideal that the breakout has triggered some large shorts to the downside as you can see from the chart below. While on this chart I want to point out to you that you can see how powerful the volume area that I defined for you months ago really is. That is the 47.12 area on WTI. It is the level where oil will either try to move up from or the level where it will continue its down move. It is extremely powerful and has held price since early 2015. That is you major volume area.
Why is that significant?
80% of the time price will return to this area unless the market breaks into a trend which is hard to predicts. It hasn't trended since its fall in 2014. However considering it is right at it at the moment with inside bullishness I would look for price to continue upward to sideways for the next few weeks. It all depends on who wins out and bearish sentiment is the theme at the moment. Could produce a move to 52 or more. Extremes are not as great as they were but they are still quite high to the upside.
The Aussie dollar looks poised to begin a good move down from here. I think there is 1500 pips to be extracted over time if you are patient with the trade. There are some major extremes to the upside at the moment in COT positioning and that is just about when it turns. That being said the CAD is also looking ripe for a correction or more. It should weaken from here.
If you are a precious metals fan I think they have a little more upside but there could be a major sell off in the not too distant future. I would not look for gold to move too much higher if the Dollar is rising. it may hick up to the 1400 area but I doubt too much higher. Palladium is ripe to correct to.
I don't see much changing in the scheme of the trends in place. While this is indeed a good place to short the EUR/USD I don't expect any major moves down and nor do I expect any major moves up in the Dollar any time soon. I alerted you to these changes in trend a few months ago and I have been on the money. Stocks will continue to move sideways to up. Buying the dips are still the way to go until it isn't and there is no indication so far that this trend will change. You hear the talking heads with their constant yammering of trying to predict market tops and bottoms. It is not easy for the best traders to do it so why would you take some idiots advice that believes every pitch of hype that comes across their desk.
The Dollar may have bottomed though for the time being. I think that further downside is limited for a few months at least. That should keep everything else rather rangebound as if they hadn't been rangebound enough as it was.
Oil may have the potential for a nice move to the upside if you follow the ideal that the breakout has triggered some large shorts to the downside as you can see from the chart below. While on this chart I want to point out to you that you can see how powerful the volume area that I defined for you months ago really is. That is the 47.12 area on WTI. It is the level where oil will either try to move up from or the level where it will continue its down move. It is extremely powerful and has held price since early 2015. That is you major volume area.
Why is that significant?
80% of the time price will return to this area unless the market breaks into a trend which is hard to predicts. It hasn't trended since its fall in 2014. However considering it is right at it at the moment with inside bullishness I would look for price to continue upward to sideways for the next few weeks. It all depends on who wins out and bearish sentiment is the theme at the moment. Could produce a move to 52 or more. Extremes are not as great as they were but they are still quite high to the upside.
The Aussie dollar looks poised to begin a good move down from here. I think there is 1500 pips to be extracted over time if you are patient with the trade. There are some major extremes to the upside at the moment in COT positioning and that is just about when it turns. That being said the CAD is also looking ripe for a correction or more. It should weaken from here.
If you are a precious metals fan I think they have a little more upside but there could be a major sell off in the not too distant future. I would not look for gold to move too much higher if the Dollar is rising. it may hick up to the 1400 area but I doubt too much higher. Palladium is ripe to correct to.
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