Currency
The US dollar has now closed lower for 6 weeks in a row which is testing the patience of the bulls. This week the price action cracked the top rail of the horizontal trading range which is a negative, but not confirmation yet the trend has reversed down. There are several more layers of support that will need to be hit before I throw up the white flag and surrender to the bears.
This first chart is just a simple daily line chart which shows the US dollar closed just below the top rail today (friday) at 99.84.
Victor thinks that you’ve got to get your world view right. The world has changed and the markets are coming around to the view that Trump is going to do what he said he was going to do. Currency markets react. the US dollar down the last 6 weeks in a row after hitting a 14 year high.
…also: Trump Wall Critics Busy Building Walls Themselves
Following winners is natural. These names represent the investing themes liked by readtheticker.com: Richard Wyckoff, Jesse Livermore, Richard Ney, William Gann, Jim Hurst, Sir John Templeton, Peter Lynch and William J O’Neil. These are the best gunslingers!
Investing Quote…
“Keep the number of stocks you own to a controllable number. It is hard to herd cats, and it is hard to track many securities. Take your losses quickly and do not brood about them. Try to learn from them but mistakes are as inevitable as death.” ~ Jesse Livermore
“Until an hour before the Devil fell, God thought him beautiful in Heaven.” ~ Arthur Miller, “The Crucible” [Contrarian Investing]
“Markets are designed to allow individuals to look after their private needs and to pursue profit. It’s really a great invention and I wouldn’t under-estimate the value of that, but they’re not designed to take care of social needs.” ~ George Soros
“Because of the extreme challenge, one must commit full attention to it.” Market speculation is “no different than trying to be a successful doctor or lawyer … you simply must devote yourself full-time to the study of your craft.” ~ Bernard Baruch
“The financial markets generally are unpredictable. So that one has to have different scenarios… The idea that you can actually predict what’s going to happen contradicts my way of looking at the market.” ~ George Soros
1. Doomsday Clock Dangerously Close to Striking Midnight
The Doomsday Clock, started by a group of scientists after the Manhattan Project back in 1947, is updated each January to show how close or how far away we are from the stroke of midnight, which means imminent nuclear holocaust.
Well, according to the latest report from the Bulletin of the Atomic Scientists in January, the clock just moved to two-and-one-half minutes till midnight
2. A Jaw-Dropping 8.6 Million Ounces Of Paper Gold Longs Just Blew Up At The Comex!
With all of the chaos regarding the immigration decrees, I think most observers have lost track of what is really happening with the U.S. economy. Instead they are focusing on the turmoil in the country and the record highs on the Dow.
3. Don’t Count on the Great Rotation
After many false promises and one false start, it is becoming evident that 2017 will be the year the Federal Reserve finally begins down the road towards interest rate normalization. Therefore, it is likely that Ms. Yellen will cause bond yields to rise this year on the short-end of the yield curve. In addition….
One of the ironies of the fact that central banks appear to be throwing in the towel on negative interest rate policies (NIRP) is that their elite economist allies appear not to have gotten the memo. A noisy contingent is pushing to eliminate cash, and one of the big justifications is to allow central banks to engage in NIRP more effectively.
Markets are suspecting that central banks are in the process of exiting this fabulous multi-year party quietly, and that on the way out they won’t refill the booze and dope, leaving the besotted revelers to their own devices. That thought isn’t sitting very well with these revelers.
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A sane voice in a scrambled investment world.
~ Ed R.
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