I wonder if the blog would have become more popular “faster” if maybe I’d named it “Central Bank Insider” or maybe “The Guy Inside” as I’m sure by now, the odd one of you must be wondering….”How the hell did he know the dollar was gonna do that”?
Perdoname pero, on occasion I’ve got to do a bit of “shameless promotion” here as the financial blogosphere is a cut throat world full of “snake oil salesman” and “wanna be gurus”. If you want to stand out, you’ve really got to make a name for yourself – and credibility is everything.
The “long USD” trades have been absolutely unbelievable – as seen through the monster moves against EUR, GBP and CHF. Gold has again “cratered” in its wake, and we “still” see equities hanging in near the highs.
I caught literally THE ENTIRE MOVE – as I was well in position “several days” prior to lift off.
How did I know?
One of the best pieces of advice I can offer traders / investors looking to find these “magical entries” is to zoom out and start looking at longer term charts. Identify areas of support and resistance, and PLAN AHEAD as to what you might do “if and when” price comes to you meet you.
If we take another look at the “weekly” chart of $Dxy ( just as an example ) it’s painfully clear that the area “around” 79.00 ( remember – I draw my horizontal lines of support with a crayola crayon NOT A LASER POINTER ) held some significance.
Lining up your “longer term technicals” with short term news/events as well fundamentals/monetary policy changes etc creates a powerful combination and a solid method for “seeing the future”.
The further you zoom out – the more powerful / legit / stronger the lines of support and resistance become!
Long term planning and “mucha paciencia”(much patience) makes some of this almost seem easy as – you are already “ready and waiting” when price comes to you.