All Green On My Screen – As Dollar Tops Out

October 30, 2012

As suggested over the last two days – it appears that the dollar has finally completed its last push higher – and is looking to roll over. There may be a day left, or perhaps a quick spike in this evenings trading –  but I expect any further upside to be “limited” at best.

All trades entered as of last night are sitting in  profit – and the plan moving forward is shaping up – right on track.

I am currently short both the U.S Dollar and the Japanese Yen against the Commods – as well as long EUR/JPY.

Depending on overnight action, I will be adding to these positions rather aggressively here at the turn – as to maximize profits and catch this next leg “up in risk” – staying short the safe haven’s – and getting long the commods.

This is a rather significant turn here, as the dollar is unlikely to gather much support (thanks to Ben’s QE to the moon!). One would have to expect that “inverse” to the dollar moving lower – gold, silver and related stocks are set to fly.

I would not suggest missing this entry in gold and related stocks – as the gold bull is incredibly difficult to ride. The pullbacks are deep – so deep in fact that most traders dump at the bottom – and then get beat up trying to chase it.

There are only a few times a year ( if that ) when buying gold is a no brainer – this is one of those times.

Written by Forex Kong Posted in Daily Forex Trading Posts Tagged with dollar devaluation, dollar short, dollar top, dollar weakness, money printing