{"id":313304,"date":"2010-02-12T10:24:33","date_gmt":"2010-02-12T15:24:33","guid":{"rendered":"http:\/\/www.businessinsider.com\/heres-why-you-can-kiss-your-weak-dollar-dreams-goodbye-for-good-2010-2"},"modified":"2010-02-12T10:24:33","modified_gmt":"2010-02-12T15:24:33","slug":"heres-why-you-can-kiss-your-weak-dollar-dreams-goodbye-for-good","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/313304","title":{"rendered":"Here&#8217;s Why You Can Kiss Your Weak-Dollar Dreams Goodbye For Good"},"content":{"rendered":"<p>Upstart research firm <a href=\"http:\/\/www.waverlyadvisors.com\">Waverley Advisors<\/a> continues to put out some very interesting research and analysis.<\/p>\n<p>In a note today they apply Dow Theory to the surging dollar and conclude this move is real.<\/p>\n<p style=\"padding-left: 30px;\">Meanwhile, let us take a look at another market for a good picture of a classic trend change.&nbsp; The US Dollar index has been in a long-term downtrend, broke a trendline late last year and made a higher high in the last few trading days of December.&nbsp; This year, it held a higher low and now is trading into new high territory.&nbsp; <\/p>\n<p>Remember this sequence well because we will see it many times again:&nbsp; 1) Break of a trendline, 2) <br \/>higher high, 3) higher low and the trend change is confirmed when 4) the market takes out the <br \/>previous high.&nbsp; It is certainly possible to have this sequence and then to have the market turn back <br \/>down and make a new low.&nbsp; In this case, the trend change would have failed.&nbsp; Nothing is ever <br \/>certain&mdash;the best we can do is to point out the high probability play, put on the position, manage the <br \/>risk, and look for signs that we might be wrong.&nbsp; Regardless, this sequence gives us the best possible <br \/>chance of catching a change of trend in any market or any timeframe.<\/p>\n<p style=\"padding-left: 30px;\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/static.businessinsider.com\/image\/4b757224000000000059221a-522-370\/dollar.png\" border=\"0\" alt=\"dollar\" width=\"522\" height=\"370\" \/><\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/heres-why-you-can-kiss-your-weak-dollar-dreams-goodbye-for-good-2010-2#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/if-the-euro-keeps-dropping-the-g7-will-have-to-step-in-with-its-big-stick-2010-2\">If The Euro Keeps Dropping, The G7 Will Have To Step In With Its Big Stick<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/socgens-albert-edwards-even-if-they-get-their-deficits-under-control-the-euro-will-break-apart-2010-2\">SocGen&#8217;s Albert Edwards: Even If They Get Their Deficits Under Control, The Euro Will Break Apart<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/the-euro-is-just-getting-spanked-today-2010-2\">The Euro Is Just Getting Spanked Today<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/bx6v6nShtUw\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Upstart research firm Waverley Advisors continues to put out some very interesting research and analysis. In a note today they apply Dow Theory to the surging dollar and conclude this move is real. Meanwhile, let us take a look at another market for a good picture of a classic trend change.&nbsp; The US Dollar index [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-313304","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/313304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=313304"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/313304\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=313304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=313304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=313304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}