Sunday, May 22, 2011

Update - June 8th, the Dollar may be forming a double bottom right on the Economic Confidence Model date of June 13, 2011 (normal interpretation of the cycle allows for a few days +/- within the date), if so this implies capital seeking safety in the dollar as it did in late 2008. As indicated before, the US Dollar appears to be headed for a high in October 2011, which seems like a short rally in light of the ECM model.

2 comments:

  1. I'm waiting to see what the FEDs are going to do in next 3wks. Too many manipulators in the game to get in or out right now.

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  2. Well that's the way it works with technical analysis, the chart will indicate something will happen and then reality creates reasons for it. You have to have some faith, take a position and use a strict stop. In the case of URZ Uranium chart, it had a trend on it for a high this summer but then the Japanese earthquake destroyed that up trend. In the case of the US dollar and other instruments reflecting huge economic forces, it becomes much less likely that strong trends will be disrupted. I consider the dollar index trend to be strongly confirmed on my oscillator, so the high in Oct. is very likely, probability would be very high 80% or more.

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