Why Paying Attention to the New Normal Makes Sense...
I thought that I would blog about this because this is a prime example of the market doing the opposite of what most traders expected. You can see that it is in WTI which is crude. No surprises really here as this market trades an inordinate amount of barrels a day.
Remember the supposed attack on the refinery in Saudi a couple of weeks ago.
Sure you do.
This prompted the media to immediately start crowing about 100 dollars a barrel marks in price per barrel as a result of the disruption to the supply in the crude market. A real disaster that should push the price of crude up a lot. Well, it did spike it up to around the 63 area which isn't really that high but as you can see from the chart below it followed a lovely stop hunt back down to the area where stops were cleaned out. This area presently sits around the 52 areas.
When oil was up that high I waited for my time to go short knowing where the Fed wants the price of oil to be. That area these days is between the 50 to 57 dollar mark. You can see how the volatility has been taken out of the markets for the past ten years or so by the Fed. In all markets, I might add. Central banks control where they want their currencies and where they want the prices of commodities to be along with other markets.
This is a prime example of a nice orchestrated stop hunt courtesy of the Fed. You can see how price declines steadily day after day in a sharp was capturing all the longs that entered in at the top of the spike around the 60-63 area. This is the ultimate pump and dump. It is also why most of the genius underperform the market average.
At the moment you might be wondering if there is another market poised in the overbought or oversold area in relation to the Fed. Personally, I think there is. That market is the EUR/USD (hope you are tuning in to my signal which is still perfect years later) which is poised to go up. The other market I think that is going to start falling sometime soon is the Dollar index which recently hit a high around 99. I think this is about all the US economy can handle in a strong dollar. A strong dollar is actually a good thing for people. It means that your dollar buys more on the global market. It means that your dollars buying power is strong. Yet it seems that everyone is hell-bent on this devaluation model for exports. Make your citizens poorer just to boost your exports. Pure stupidity.
So going long the EUR/USD at this point is not such a bad idea. Cheers!
Remember the supposed attack on the refinery in Saudi a couple of weeks ago.
Sure you do.
This prompted the media to immediately start crowing about 100 dollars a barrel marks in price per barrel as a result of the disruption to the supply in the crude market. A real disaster that should push the price of crude up a lot. Well, it did spike it up to around the 63 area which isn't really that high but as you can see from the chart below it followed a lovely stop hunt back down to the area where stops were cleaned out. This area presently sits around the 52 areas.
When oil was up that high I waited for my time to go short knowing where the Fed wants the price of oil to be. That area these days is between the 50 to 57 dollar mark. You can see how the volatility has been taken out of the markets for the past ten years or so by the Fed. In all markets, I might add. Central banks control where they want their currencies and where they want the prices of commodities to be along with other markets.
This is a prime example of a nice orchestrated stop hunt courtesy of the Fed. You can see how price declines steadily day after day in a sharp was capturing all the longs that entered in at the top of the spike around the 60-63 area. This is the ultimate pump and dump. It is also why most of the genius underperform the market average.
At the moment you might be wondering if there is another market poised in the overbought or oversold area in relation to the Fed. Personally, I think there is. That market is the EUR/USD (hope you are tuning in to my signal which is still perfect years later) which is poised to go up. The other market I think that is going to start falling sometime soon is the Dollar index which recently hit a high around 99. I think this is about all the US economy can handle in a strong dollar. A strong dollar is actually a good thing for people. It means that your dollar buys more on the global market. It means that your dollars buying power is strong. Yet it seems that everyone is hell-bent on this devaluation model for exports. Make your citizens poorer just to boost your exports. Pure stupidity.
So going long the EUR/USD at this point is not such a bad idea. Cheers!
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