Thursday, August 26, 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 ETN


The massive bullish energy build from 2020 to 2021 setup this rally. We talked about it, and many, I'm sure ignored it. While this energy build has dissipated (or is currently dissipating), it does not mark the end of the rally or bullish story. If the primary trend Flips from down to up, it significantly changes the game. The bearish energy build supporting continuation of the primary downtrend becomes a blocking dome, a setup that often materializes to slow an early cycle primary uptrend. Blocking domes that materialize during early cycle uptrends are common, and rarely flip it down. This is based not a guess but rather observation of the US Dollar Index continuous contract.

The LeadM tab of the Matrix reveals that 0 of the 15 primary trend impulses since 1985 failed after the flip. In other words, 100% of the primary uptrends registered cycle counts higher than 2 for an average and maximum profit of 5% and 21%.

A primary uptrend in the US dollar carries consequences. Subscribers should be watching the US dollar Index very closely (Line 22 of the Trends Tab). If it flips up in September or October, please ignore what the majority is saying and doing. The majority is a collective group of morons, led by idiots that talk too much. This is not intended as an insult as much as an observation of how the game works.

A rising US dollar will cripple periphery economies loading with US dollar denominated debt. A lot of US dollar denominated debt has been created, and is being held outside the US.

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Market-driven money flow, trend, and intermarket analysis is provided by an Access Key.