Downward momentum may be becoming exhausted in natural gas, while oil prices have sold off hard but not enough to damage the overall bullish chart pattern. See charts below.
Slope of Hope Blog Posts
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Harry Boxer’s Charts of the Day
Originally published on TheTechTrader.com.
Wave Analysis of USD (by Avi Gilburt)
Due to the seemingly broken correlations that many have been witnessing regarding the USD, it has raised many questions regarding the direction of the USD. Many people believe that the USD is headed much higher in the near term. This mass confusion seems to be due to the fact that the old correlations between the USD and so-called “risk” assets are no longer holding as true. But, that may not continue for very long.
However, the USD has been acting exactly as expected within our Elliott Wave analysis over the last several months, and almost to the penny. As of late, the USD bottomed exactly where we expected it would in late February, and then topped exactly where we expected it would a little over a week ago.
Based upon this pattern, the USD is now setting up for a strong decline that will probably begin within the next week. However, it may still have one more small upwards retracement before its next expected precipitous drop.
Wave Analysis of USD (by Avi Gilburt)
If you listen to many of the market analysts discussing the dollar and its relationship to the metals, or to the equity markets, it seems as though there is much confusion. The confusion is due to seeming “correlations” between the dollar and “risk” assets that are no longer holding true. In fact, many were expecting that a rally in the USD would coincide with a decline in metals and the equity market. But, we have recently been witnessing a break within these correlations.
It is for this reason that I continually stress that each chart MUST be analyzed on its own, and it is faulty analysis to base a significant amount of your analysis of a particular chart purely on what another chart is doing. This leaves an analyst in a befuddled state when the seeming correlations disappear just as easily as they initially appeared. This is what is now happening to many in the financial world, as they scramble to figure out what is happening.
Harry Boxer’s Charts of the Day
Originally published on TheTechTrader.com.
