Is Dollar on verge of completion of Phase 1? During Phase 2 Dollar rally, ONLY OIL appears to perform well. Market appears to be making a all time HIGH but then goes into consolidation. Gold appears to be making a New LOW then goes into range bound action. Whats your opinion?
Please read earlier post if you are seeing this chart for 1st time. - The red line did dip below zero mark and we got our bounce, now the panic drop is on the door steps .... get short or get out of the way.... Path of least resistance appears to be on downside and we might get a significant drop from current level. We speculate that a drop close to 14000...
Charts are telling us to be very cautious, as soon as we get the 1st dip in the RED line below zero mark, we shall expect a convincing bounce only to find more panic ahead. ONLY time will tell when we get that scare drop.... Considering where we are today, probability of making significant NEW HIGH is very LOW, however a marginal NEW HIGH cannot be rules out....
In our earlier chart posted in Jan of 2014, we mentioned that this DOLLAR rally will come as surprise to many. Now we have hard evidence. Expect DOLLAR to pullback and then go for next significant rally. At the moment it is very hard to time all this but all this could happen in a year or two from now...
Take a look at this monthly chart over last 15 years. The chart itself is self explanatory and should be easy to understand. Another 6 months and we shall know where is this market headed for coming years and how painful things are going to get in stock market....
The pattern looks very convincing, Isn't it!!! If at all this repeats then expect another 20% drop in commodities along with tanking stock market (possibly start of massive BEAR). We shall know the outcome in next 6 months...