Due to the “Power of the Pattern” the suggestion was made to buy stocks the last day of August (see post here). Did I know one of the best September’s in decades would take place? I wish… but the answer is a clear NO! I deeply liked what I saw in the patterns, but the best September in 70 years….NOT!
If you have been a viewer of my work on dshort or this blog, you already know I am of the opinion that getting the currency markets direction correct, sure can help a portfolios performance! With this in mind, below is an update of the Euro/Yen.
CLICK ON CHART TO ENLARGE
A breakout in the Euro/Yen would most likely mean the U.S. Dollar fails at support, which usually leads to higher commodity and stock prices, on a GLOBAL BASIS!
A breakout in the Euro/Yen…Breakdown of the U.S. Dollar, would suggest that portfolios OVERWEIGHT TOWARDS International and Commodities holdings. (This should give a boost to ECH and DBA type ETF’s) U.S. Stocks should do well, relative strength though should take place in these areas!
ALWAYS keep stops suited to YOUR RISK TOLERANCE in place!!!