“You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something – your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.” – Steve Jobs
As we have been discussing since the previous video and as highlighted once again in our latest outlook, our focus will remain on the DXY as we head into the end of the month and the Labor Day long weekend.
Remember that positioning is very one-sided on a lot of the pairs and you really want to be cautious about not getting caught fighting flows in a waive of covering. If interested, we posted the GOLD, NZDUSD and USDCHF charts on our twitter feed yesterday.
With respect to equities, there is very little to comment on > it’s a grind/squeeze higher until it isn’t… focus is all on follow-through and if markets can attract new buyers at highs. As always with these kind of moves, the key is riding the move but understanding that sooner or later there will be an exhaustion of buyers and you do not want to end up being the last bagholder.
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