Registered: Mar 2008
04-28-12 07:09 PM
As I am a short term oriented trader, I don't usually like to make the "big" calls. However, I am getting sell signals on the US Dollar across almost all Major counterparts. These signals are lining up on long term charts and are corresponding with spikes in selected commodities and a renewed round of Treasury purchases.
I have no idea what to make of this other than the markets are begining to anticipate an unannounced QE3 type of operation by the FED.
By my models, GBP, EUR, JPY, CAD, AUD, NZD, CHF, MXN, ZAR, pretty much you name it. If I follow it, the monthly, weekly, and dailies, are screaming "SELL THE DOLLAR".
It is unusual, to say the least, that these long term signals are cascading over time frames, regardless of the individual risk on/Haven status of each individual pair.
Could this be the start of a Easy Money stance by the Fed that makes the stimulus seem miniscule? An effort to stem bad numbers during the Election Cycle? I have no idea, but market seems to be signaling a seismic shift in the value of USD.
What does all this mean for commodities, US equities, Gold?
I think we are just stepping into a very interesting era.
As an aside, I also got a sell signal on EUR/CHF on the weekly and monthly, right at the floor (bottom of the SNB Peg). Obviously I won't take it because I am not a hedge fund billionaire, but that seems kind of ominous. There is some scary stuff going down that noone in mainstream media/government is telling us about.