Posted by: rp on the 1st of Dec 2011 at 11:24 pm
and for my last currency chart of the night, nothing at all, not even close, has changed the technical picture for the primary uptrend i’ve been tracking in the $USD/DXY. as this chart shows, there is plenty of downside possible without risking this trend (an uptrend is defined by prices making a series of higher highs and higher lows). of course for the bears, it would be very painful to hold onto the shorts un-hedged if the dollar made a run down towards that previous reaction low and even more painful if it got there and just kept going. nobody ever said trading was easy. for now, i am continuing to respect the larger downtrend in equities and the uptrend in the dollar and trade accordingly, unless/until that changes. may hedge up with some longs or cover some shorts, however, if that new UUP 60 min channel and that 30 min SPY downtrend line i posted today gives way. g-nite.
