When it comes to a New Year, the Poster above always comes to my mind as so many create long reports, attempting to predict the outcome of the year ahead. Think back 12 months ago…can you find a report that predicted all of the unique moves (long and short opportunities) of the different asset classes, ahead of time?
My GOAL for the next 12 months and beyond….To provide research that could help investors enlarge their portfolios regardless of market direction, by using the “Power of the Pattern.” My goal isn’t to predict what will happen, it is to position ourselves to take advantage of the patterns that are created by excess fear and greed of global investors.
As we start a new year, one thing that is NOT NEW, is the battle of the risk on/risk off trade and the impact of the U.S. Dollar . Below is an update on the Dollar this morning, reflecting that a key rising support line is being broken early this morning.
CLICK ON CHART TO ENLARGE
As most of you are well aware, often times the New Years starts out on a positive note (positive seasonal track record). Whether the early morning rally in the stock market will keep going for an extended period of time, will be based upon if the Dollar can hold at support line (3), which is the top of the “Cup & Handle” pattern.
Extreme sentiment has been building in the Euro, which makes the action at (3) more important than usual!!!