On 7/31 the Power of the Pattern shared “Two Reasons The Dollar Should Decline!” (see post here)   The reasons at the time were….Bearish rising wedge & 82% of investors were bullish the U.S. Dollar. 

Most know what should happen to risk assets if the Dollar declines.


From its highs 2 months ago, the U.S. Dollar has declined almost 5%, while stocks and Commodities have experienced a very nice rally!

Why might investors be surprised by the U.S. Dollar in the near future? 

Only 32% of investors are bullish the Dollar, so a rally would surprise most traders! The decline in the Dollar has taken it from the top of  rising channel to the bottom of the channel, were a few support lines come into place at the 61% Fibonacci retracement level.

Premium & Sector Sentiment Extreme members recently took a long position in the Dollar due to the combo of support and sentiment coming into play. Our stops are placed just below the support and Fib intersection.

If you would like to see past trades for Sector Sentiment Extreme members, send an email to [email protected] and ask for Free Trade report or click on the gray box below and we will share our past ideas with you and the results when positive patterns and sentiment extremes come into play at the “same time.”


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