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Re: U.S.$ Index/Andrew *PIC*
In Response To: Re: U.S.$ Index/Lee ()

Well I guess you are referring to the Silver/Gold Ratio chart I've posted often here for years that broke out last Aug/Sept. I didn't predict the selloff date though but it was obviously very overbought and stretched out to extreme as most observed. Regarding the U.S.$ it is right up against 1st resistance at 75.50. On the U.S.$ ETF:UUP that would be 21.62 that price tagged today. That price is the March support that broke down and is now resistance. Notice that is also the falling 50ema resistance as well that price has respected in the past. Above that is the Nov low support of 22 that broke down in March and is the next resistance ahead and is also the 11 month downtrendline. And above that is the 22.65 support that broke down in January and tested it as resistance in Feb and sold off again and is also the 200ema that tends to stop this market in its tracks cold when in a bear trend. The point of all this is UUP is in a major bear market with plenty of resistance points above to cross. I do think it is way overdue to begin another uptrend of many months once again but looking at all the resistance pts and being a countertrend trade it will be a tough climb ahead. The U.S.$ has been in a major bear market for 10 years now and has had 3 significant rallies that lasted from 7 to 11 months each. And with the extreme bearish sentiment with everyone short is likely due for another run up. But for the small amount of money one could make looking at the price structure I wouldn't waste my time trying to make perhaps 10% or so gains with so much resistance in front of it. The reward to the risk and time and trouble to get through all that resistance just doesn't make this a good trade in my book. But if in fact a new significant uptrend in UUP is beginning most other markets will get sold off as a rule of thumb. There are far more possible opportunities there than getting long UUP.

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Re: U.S.$ Index/Andrew *PIC*