Tuesday, July 27, 2021

#Dollar Index Review $UUP $UDX

US Dollar Review

Those that view the message of the market on a daily basis are likely confused by trading noise. While trading noise contributes to long-term trends, it does not define them. The focus on short-term noise rather than trends, a source of confusion for the majority of investors, leads to the creation of bag holders at major trend transitions.

The US Dollar Index's overall trend, revealed by trends of price, leverage, and time, are defined in The Matrix for subscribers.

Subscriber Comments

US Dollar Index Primary Trend

The US dollar index's primary trend is near flipping in August. The volume oscillator, which often leads price, WILL flip in August. Price is moving higher with volume leading the way as the bullish energy build dissipates. The dollar index's energy build is now bearish.

Do not confuse the bearish energy build as a signal to go short. No way! The bearish energy build against a potential primary trend flip up is not a desirable combination for the bulls (or bears), but it can be easily overwhelmed by triple alignment across all three time frames. This is a difficult setup for traders.

The invisible hand, the driver behind capital flows, doesn't care about traders. They're moving into the dollar for reason - safety despite all the manure MSM is spreading. If the primary trend flips up, the path of least resistance will be up. Traders following the Evolution of the Trade might be irritated by EOT's conflicting setup, but rule number one is never fight the primary trend.

If bullish wait for RESET after the bearish energy build dissipates. If bearish, wait for triple downside alignment under a bearish energy build. The primary trend flip to up under a bearish energy build warrants no action. Stand and watch, and wonder why the invisible hand is demanding safety.

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