We’ll take a closer look at the situation in NFTRH 802, but for the moment I want to point out that Uncle Buck is breaking what I had labeled a bear flag to the upside. In other words, it was not a bear flag. It is a currency reflecting the mayhem that usually attends FOMC week. I mean, 2 days ago everybody thought the Fed went dovish, which would be USD-negative. And of course by Friday that is undone.
At this point, we are back to watching the 105 area, because if the buck gets above that and holds it, something – possibly a real stock market correction – could be in order. That would also pressure commodities and likely, the precious metals as well. But for the moment I am chalking it up to FOMC week shenanigans. 105 is the parameter by which shenanigans could turn more serious.
This is what I love about NFTRH. I was holding UUP with a slight gain. I figured, “ok, the FED has clearly signaled that it will be easing”. I sold here we are with you explaining, Gary.
Yes, it was a weird (dot) plot this week. Bart.
Correct me if I’m wrong: each time dollar went from lower BB to the upper it signaled additional gains