Good Monday Morning!
A quick review of Friday’s action and reaction on the dollar is in order, and a note to myself and anyone else who cares to listen – mind stops always but don’t be afraid to dive back in.
What do I mean by this? Well basically ask yourself “is the premise of my trade/view still intact?” If a conditional change has been met in the trade, then your stop did it’s job. If a nasty reversal of that potential change occurs, though, your premise was still right and diving back in is OK.
Take a look at the dollar on Friday. If this thing didn’t whipsaw some folks right out of their shorts, I don’t know what would. Some rumors, Fed speak, whatever drove the dollar close to 77 in the morning following the employment report, which by the way was through monthly Pivot Point resistance.
Problem was, nobody was buying after that point and sellers took control. Actually a perfect move and one that has me convinced we are still going to see fireworks in gold and silver.
Expect a powerful follow through this week and note the S1 and S2 support are now below 75.25 major support. Things could get interesting in April.
- Bullish gold, silver
- Neutral equities
- Bearish dollar
Trade ’em well this week and trade the extremes!