Re-print of my Feb 2nd post.. At this point, a trade up to 82 in the DXY looks like a good call. So I am re-printing it as an indication that, yes, I actually am a pretty good technical analyst with some very profitable trading ideas. FYI, Friday the 19th had a high at 81.34 a 9-month high. More importantly, we have moved from our 18month low in December at 74.23, a 7.11 move in 2 months, pretty much an indication that the dollar is on a strengthening move now. I really like 82 as a sale the first time up, because, once again, its what??? A 50% retracement of the larger previous down move.

So for your reading enjoyment, here is the original blog entry.

Have a great week ahead. 🙂

6- month high in the DXY….

Today the US dollar completed a 38% retracement of the 10 month down move, which began last march 2009. The next target is 82 in the dollar index. That would be a 50 percent retracement. Above that we have a 62% retracement at 84.00. Just a heads up. About six weeks ago, in the blog, I wrote that I thought we would see 82. I still like that as a target. This obviously would result in much lower prices for commodities which move inversely with the dollar. A higher dollar makes our crops and stocks more expensive.

Use your stops to limit your loss.

Good Trading