Right now it’s time to start watching for a reversal in the dollar. If you were going to put on a trade right now it would have to be short, but significant support is a centime away. As can be seen from the chart we have had some luck with UUP in the past and we will be wathing for the turn.
uup and down and round and round…
- Post author:WHC Bassetti
- Post published:August 20, 2009
- Post category:Letters
- Post comments:2 Comments
This Post Has 2 Comments
just wondering what you consider the best way to define secondary uptrend in this bear market and how you will define the resumption of the primary trend if and when it resumes and at what number you consider a bull market to have resumed doyou have a view on the best ema or sma for defining secondary trend or just use trendlines
I no longer think in terms of primaries and secondaries, but in terms of waves up and down. As price takes out previous highs or lows you adjust your positions, buying and selling. The analysis says that the bottom is over when the Dow supersedes 9600 (approx). In view of the unprecedented nature of this market I am suspicious. I consider moving averages too “blind” to use in sideways markets. The trendline and high low analysis is better, and NOTHING is perfect in sideways markets, especially like these at present.