Trump, the Dollar & Yen Crash

We’re only going to address the elephant in the room (Trump election) to remind readers that social mood governs markets, and its process is endogenous. Meaning social mood moves of its own volition; it is not controlled by politicians. Trump’s election will create certain winners and losers, but it will NOT CHANGE ANY UNDERLYING TRENDS. Trump, the Dollar & Yen Crash

Dollar Loses “Policy Divergence” Strength

EURUSD Last week’s blast higher puts our top count on the shelf for the moment. The sharp nature of the rally makes it look like wave (a) of 2. So, a down start to the week, followed by a push higher to test the broken trendline for wave 2 is our best count. The alternate Dollar Loses “Policy Divergence” Strength

Perfect Elliott Waves

While I believe that all markets trade in Elliott waves, sometimes the waves aren’t perfect. Sometimes wave 4 overlaps wave 1 by a few pips, and sometimes what looks like five down in an ever expanding market (like stocks which are measured in a depreciating currency) is actually a false break. Regardless of being a Perfect Elliott Waves

Entering Capital Preservation Mode

We’ve made the case for well over a year now that our “dollar strength” theme, is more like “other currency weakness” than any “policy divergence.” In other words, it’s the underlying weakness in European and Asian economies that are allowing their currencies to fall against the dollar; as oppossed to dollar strength coming from the Entering Capital Preservation Mode