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I will start off with an “IF!”¬†¬†¬†¬†IF the dollar is at a low and rallies, what usually happens?¬† Stocks and Commodities often struggle¬† (see “Good, Bad & Ugly post).¬†

What ETF is a combination of a stock and a commodity?¬† Basic Materials ETF (IYM)!!! Base Materials are at resistance (See “Heavy Metal” post).¬† ¬† So if the Dollar rallies and basic materials are at resistance, Dow at resistance as well¬† (see “Home on the Trading range” post) how can we take advantage of this situation?¬†

How about an INVERSE BASIC MATERIALS ETF!!!

¬†Patterns suggest two things…..Grrrrrrrrrrrrrreat potential is at hand & this is for AGGRESSIVE investors ONLY!¬†¬†¬† Hence …….Grrrr……ressive!

Game Plan…¬† BUY SMN (200% inverse basic materials ETF) with an 8% stop.¬†(this is an initial stop, I will update)

 As I shared, this is AGGRESSIVE!!!    This would be for a small portion of a portfolio only!

Relative strength has PAID OFF on some of¬†my past suggestions¬† (see post here)¬† I suspect this could be another!¬† It is very early in this idea…yet the 500 index is off about 1% this morning and IYM is down over TWICE as much!

 

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past