Look at this market..Just as I thought it is getting extremely Bullish, it is sold. Why? Dolar appreciated with the expectations of a sooner then expected rate hike due to recovery.It is easy to reason it like that as below.
Scary/OR INTERESTING thing is,as in my previous post,ME, being long time OVERALL BEARISH, even said the market is finally going to break this BIG LEVEL,which i will explain in detail. There is a saying, sell when majority gets excited and turns bullish, buy when majority is pessimistic and bearish. I will explain the importance of this level in the next post.
Well , this index bubble is partly due to weak dollar.Index inflation lets call it. Thats mostly why as dollar appreciates, it goes down/deflates.
So what to expect next.Well, as I mentioned, around 1116 is a huge level.It is where one of the most fitting long term down trend line passed a week ago.And everyday that level is going down a bit obviously.
As long as the market doesnt break this level with a confirmation, it is early to talk about a move higher. It has been proven by the price action last month.There is always a reason to sell.
It is a difficult market. I expect a partial dollar recovery sometime soon with gold back to 1000. But eventually dollar will be smashed. Maybe euro/dollar above 2?? Why not?And that time, the markets wont inflate but panic. We will see. I love this market with so much action going on. Drive safe...
No comments:
Post a Comment