Comments on: Dollar Sensitive Assets Poised To Correct

By: rsotc

rsotc — Tue, 02 Jun 2020 18:14:46 +0000

For those that prefer ETFs over futures, ZSL (2x short silver ETF) appears poised for a rally up to the 23ish level on a solid break above this falling wedge pattern & the 20.85ish resistance level along with the breakouts in /DX & /E7 as per today’s video. 60-minte chart below.

By: Foreverlearning

Foreverlearning — Tue, 02 Jun 2020 15:58:04 +0000

Nailed that one Randy! About 2 Hrs before it cracked, you called it sir. Thank you, I exited my SLV position for $400 profit and will wait to enter. Keep in mind SLV behavior last recession, SLV bottomed with the market and took off where as GLD bottomed midway through the crash.

By: becky

becky — Tue, 02 Jun 2020 15:41:50 +0000

In reply to minaz. Are we going into correction in metals or are we going to burn through those divergences because of action in USD? :-)

By: minaz

minaz — Tue, 02 Jun 2020 15:30:48 +0000

In reply to becky.

Becky. Sorry for the confusion. Apart from the correlation that randy has shown in many videos with the usd, I look at pure price action. SI and Gc are currently showing impulsive down bars…….. I missed the short entry. We wait for randy to make an official call – our master.

By: rsotc

rsotc — Tue, 02 Jun 2020 14:09:55 +0000

In reply to becky.

Yes. A falling dollar is typically bullish for gold & silver. You can clearly see the inverse relationship between gold & the $USD if you pull a long-term (10- 30 yrs) chart with both. Even better if you can invert the price of one of the other (e.g.- compare DGZ which is the inverse/short for gold with $USD, UUP, /DX, etc. or UDN with GLD, $GOLD, etc…

Also, note that the inverse correlation between the two is not a constant or a 1:1 ratio. There are temporary periods where gold & the Dollar can move in unison although looking back for decades, those periods are fairly rare & always fleeting.

By: rsotc

rsotc — Tue, 02 Jun 2020 14:04:37 +0000

In reply to minaz. Yes, silver tends to move more in percentage terms than gold. Plus, gold has been grinding around sideways since the beginning of April so the charts aren't as clear as they are with silver right now. Of course, a bearish or bullish setup is just that, only a potential trade setup pending a buy or sell signal. In this case, best to see confirmation of breakouts on $USD, Euro & Silver as well as crude (breakdown level/sell signal criterion listed on the 60m chart of /CL below).

By: Foreverlearning

Foreverlearning — Tue, 02 Jun 2020 13:54:55 +0000

DXY also has support here and has dipped below it but may bounce back. If rebound from here SPX may miss the .786 fib fill which is bearish.
If DXY goes down to trendline then SPX most likely fills the .786 at 3135

By: becky

becky — Tue, 02 Jun 2020 13:52:26 +0000

Does this mean that both gold and silver should appreciate in value if dollar goes down? Confused by the comment from @minaz

By: rsotc

rsotc — Tue, 02 Jun 2020 13:37:21 +0000

One more thing to add as I say this often yet it bears repeating: Divergences are not buy & sell signals, merely an indication that an impending trend change is likely. Once positive (bullish) or negative (bearish) divergences have formed, one should be on the lookout for a buy or sell signal which can come in various forms, such as an impulsive breakout above/below resistance/support; a bullish or bearish candlestick reversal pattern; etc..

By: minaz

minaz — Tue, 02 Jun 2020 13:28:03 +0000

Hence we watch for the correction in SI – can be a big profit maker at 5k per contract.