Bullish Set Up on US Dollar

By: readtheticker | Sun, Jan 22, 2012
Print Email
Ben Berbanke

The US Federal Reserve meets next week (Jan 24/25) and many are expecting Bernanke to release the next financial QE details. The markets are poised for Ben next market leading action.

All this is bullish for the US Dollar. Yet the US Dollar and the SP500 has been doing all it can to ignore the fundamentals. Stocks within the NYSE index are very much stretched to the long side (a large percentage of stocks are above 70 on their RSI) showing complacency. Even the VIX fell below 20, wow.

At the moment it has been a dream start to 2012, the 30% less volume January market has allowed the 'big boys' to pump up stocks extremely cheaply. This means they can distribute stock float to the public at much better prices than when the SP500 was stuck under its 200 simple moving average.

We think the market is acting like 'buy the rumor sell the fact', the rumor is QE release, the fact is no QE. And thus the US dollar will continue on its trend along the blue dotted Gann Angle 1x2.

UUP Angles

At the moment cycles are confused (cycles are bullish on FXE), but we think below is the dominant cycle leading intermarket relationships and has done since 2006. The US Dollar 83 period weekly cycle.

UUP Cycle

The comments above are actually picking a top in the SP500, and one must be crazy to do that. Thus shorting stocks will not easy. It should be noted the last time Ben Bernanke said there was no QE the market dropped 20% (August/September 2011) a few weeks after. If you dont like the UUP bullish idea, check out TVIX as volatility just may kick off after Ben dissapoints, after all he has already leaked to the market that QE is not happening, so what more do you need.

 


 

readtheticker

Author: readtheticker

readtheticker
www.readtheticker.com/
www.readtheticker.com/Pages/Blog1.aspx

We are financial market enthusiasts using methods expressed by the Gann, Hurst and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides online stock and index charts with commentary. We are not brokers, bankers, financial planners, hedge fund traders or investment advisors, we are private investors.

LEGAL DISCLAIMER: The material is presented for educational purposes only and may contain errors or omissions and are subject to change without notice. Readtheticker.com (or 'RTT') members and or associates are NOT responsible for any actions you may take on any comments, advice,annotations or advertisement presented in this content. This material is not presented to be a recommendation to buy or sell any financial instrument (including but not limited to stocks, forex, options, bonds or futures, on any exchange in the world) or as 'investment advice'. Readtheticker.com members may have a position in any company or security mentioned herein.

Copyright © 2011-2014 readtheticker.com

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/