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The “Power of the Pattern” in the above chart is suggesting that the Dollar was poised for a rally and the Euro a decline.
This is one of my tools I used to help us take positions to score on defense as we are owners of SMN, PSQ and DUG.
Scott… Great job and Thanks for sharing. As you and others know, my goal is to “inflate investment portfolios, regardless of market direction, via the “Power of the Pattern!” The patterns suggested for us to make this move and with 46% of all inflows for the month of Feb. going to this single ETF, it took the odds of being right and scoring on defense way up there!
Your success sure makes the move in DUG, SMN and PSQ look rather boring! 🙂 Keep up the great trades Scott!!!
Hi, Chris: bought DUG call options yesterday on your recommendation and just got stopped out with a 1-day gain of 49%. I’m sure I’m way early exiting, but what the heck, that’s a good couple YEARS overnight… Thank you, sir!
Aleks…yes I was very concerned that if the dollar broke the final support line it could fall a ton! Yet support was still in play. As can be seen in the Euro/Dollar chart, key dollar support and Euro resistance was still in place. The positions in PSQ and SMN were taken recently due to what these currency patterns were suggesting.
Stemphos….For sure! If the power of the pattern is correct, per a Dollar rally/Euro decline….most likely only cash, bonds and scoring on defense will be very good tools to own!
Does this mean that ETFS like EPI and EEM could be under pressure?
few days ago your comments on the dollar chart were quite bearish? Did you change your view based on action from last couple a days? TLT was also very weak, is that outlook changing based on the patern?
PS I love your insight into world of paterns and trends.