This is Direxion Small Cap Bull 3X Shares (TNA). Its a new day so I have recorded this as a new trade on my TSI trading record.
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The next couple of charts are of the US Dollar, and will give you some idea what the madness is to my thinking. LOL
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Click on the charts to ENLARGE
This is a 4 hour chart of the US Dollar. What this shows me from a momentum point of view - using the MACD because this particular software does not include the True Strength Index (TSI) indicator - is the relative extreme nose bleed height of such sudden momentum generated yesterday and pre-market today. Believing that this momentum is simply unsustainable, there should at least be a nice pause in upward US Dollar movement which should help the stock market to rally.
This is a 1 hour chart of the US Dollar. As we can see, a divergence has already shown up, somewhat validating my thinking of the 4 hour chart above- that this upward US Dollar price movement will have to take a breather, if not downright collapse (wishful thinking, I am sure).
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Morning John, although the US$ broke above its trendline from its 88.71 high to the 80.08 low there seems to be little pull from the 50dma at 84.15....my traders Macd went from oversold to overbought in the last 2 days of trading, wow!
ReplyDeleteThe flip-flop continues as 1 day its risk adverse into US treasuries the next buy gold.
j
Good Morning j and thank you for your post. Yes, gold is next.
ReplyDeleteOne of the more interesting things I heard on TV last evening was some "expert" say that money managers were selling yesterday and going to ask questions later.
Yes, its called survival and getting out of the way of an oncoming train - I understand that.
But how illogical for the market to hear Ben say he is going to print more dollars, make them "worth less" and then like a stampede of stupid cattle they, of all things, buy the very thing he avowed to continue trying to destroy.
It's taken me a while to learn that the stock market is not the most logical place to invest - far from it. However eventually, fundamentals do trump emotion and we all try to deal with the illogic - while it is at play - as best we can.
"It's taken me a while to learn that the stock market is not the most logical place to invest - far from it."
ReplyDeleteIt didn't always trade without logic as these past years are filled with so much intervention not allowing natural charts to form, so human nature has the likes of you tweaking the indicators of old to an indicator that works in todays manipulated trading.
Continued success to you!
j