in my example, the USD index has broken through a multi decade floor of 80 what are the odds if it say going back to 79 at some stage soon to retest the old floor of 80? Call me blindly optimistic, but I just think the chance is high, where is where I would ideally like to enter short USD
Just be careful, there are so many issues the US faces right now M3 is screaming, we need and want rate cuts in the future and no fiscal responsibility right now. Put tight stops in and ask your self why are you taking this trade http://tradepilotpro.blogspot.com/ take a min to read "Catching Bottoms and Tops" Trading with the wind at your back is better than shoveling shit against the tide. Good Luck, Joe Baker
Price movement is either penetration OR re-test (to varying degrees). We need and want rate cuts???????????????????????????? Rates (a spectrum) are STILL at a generational low. As for cuts, IF you're referring to Fed Funds, that's moral suasion. As for M-3 screaming. I wanna know WHERE you're getting for figure. REALLY wanna know. I do concur with trading with the wind at your back.
Just one more thing Rate cut .25 is going to do nothing for Economy however it gives people the feeling that the Fed is taking notice I also own a finance Co. so I do speak to many people every day and when the fed cuts rates, they have a better feeling about the future however, that is just what they tell me. One last thing YES we need cuts for the bond market to keep in an upward pace to keep rates at least where they are, we are in for the MOTHER of all Housing recessions, at least till 2010 I know we will not have a real recession because most cant remember 1988-1992 That was a doozie, I will never forget it. http://en.wikipedia.org/wiki/List_of_recessions So cheer up, we can all trade better so we will not feel it as much as the rest of our peers Take Care, Joe Baker http://tradepilotpro.blogspot.com/