“You don’t win once in a while, you don’t do things right once in a while, you do them right all the time. Winning is habit.” – Vince Lombardi
“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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“Those who consider the inessential to be essential, and see the essential as inessential, don’t reach the essential, living in the field of wrong intention”
– Gautama Buddha
Not much has changed as we wait for BOE today and NFP / ISM tomorrow. We have attached to two main charts we would be keeping an eye on to get a feel is the ramp attempts in equities have any legs. We’ll stick with our base-case scenario that equities are still in a complex topping process and that we have already seen the highs in quite a few of the charts. Again, don’t forget to keep and eye on bonds!
ICYMI >Video Updates: Early Bird.
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Wishing you a great day ahead.
“Have you ever had that moment when you looked back on something and said, ‘Well, gosh, that seems obvious now… why didn’t I see it then?’ I like to call this the Face Palm Epiphany. Oh, hindsight, you magical, humbling thing.” – Alethea Konti