US Dollar: Long Term Prospects Look Good

For six and a half years the US Dollar Index (DX) has trended sideways. The technical signs on the wall favor this trend resolving higher. If that panned out and the next cyclical bull trend were akin to the last one when the 20th century was coming to a close, we’d be looking at upside potential to 121.6. This outlook has implications for foreign exchange traders – there could be

Facebook Earnings Beat The Street; Investors Sell The News

Social media has come a long ways. Big players like Facebook (FB), Twitter (TWTR), and LinkedIn (LNKD) dominate the social connecting and networking scene. But if investors reaction to Twitter and Facebook earnings are a sign, perhaps the sector is set for some price consolidation. Tonight Facebook reported strong earnings, beating estimates on the top and bottom line. Mobile growth was a big factor and one would think investors would

Grains Rally Into Fed: Corn Prices At Technical Resistance

The Federal Open Market Committee (FOMC) meets today and tomorrow to discuss monetary policy and provide their views on future interest rates. And it seems the Grains sector is tuned in. Select grains such as Corn, Soybeans, and Wheat are rallying today, and have rallied nicely throughout October. But, the sector is at (or nearing) the resistance levels that I wrote about on October 7th. In my opinion, this is one of

Gasoline Futures Signal Further Relief At The Pump

Gasoline futures have been falling for several months, bringing delight to drivers across the country. Recently, RBOB Gasoline fell below the key level of $2.45. RBOB dropped sharply after breaking that technical level in September, falling to a 4-year low at $2.13. The term structure of RBOB is rather flat near $2.15 through the winter months. Check out the various futures contracts in the table below.   A rule of

US Dollar Index And Select USD Pairs Trade Setups

The week is starting off with some modest US Dollar Index (DXC) weakness, but nothing that was unexpected. However, I have adjusted the wave count to account for this. I am comfortable remaining long in USD/SGD as it is performing better while the US Dollar Index has been selling off. The same goes for USD/JPY and USD/CHF – pairs we will need to keep an eye on for possible longs when DXC

3 Reasons Ford’s Stock (F) Is Worth Watching Right Now

When stocks were peaking into mid September, Ford (F) was already turning lower. And as the equity markets corrected into October, Ford got hammered. Now stocks are bouncing and Ford is having trouble getting its footing. Could a stronger US Dollar be at the heart of Ford’s woes? Perhaps, but more importantly, the stock is nearing a technical crossroads. Below is a weekly chart dating back to 2009. As you can

Natural Gas Breaks Lower, Eyes November 2013 Low

Natural gas traders are left wondering what is in store for prices this winter following a bitterly cold and bullish winter for the eastern U.S. in 2013-2014, followed by a very mild and bearish summer of 2014. Will a similarly brutal winter ensue, sending Natural Gas prices sharply higher again in 2014-2015? I won’t pretend to be a meteorologist, but some will point to the Farmer’s Almanac prediction of another

Why The Oil And Gas ETF (XOP) Is Rallying

The Oil and Gas ETF (XOP) suffered a tremendous decline from the 2014 all-time high at $84. In sum, XOP retraced 50% of the move from $23 to $84 from the bear market low in 2009 to its peak in 2014. The precise 50% retracement level is $53.53. Technicians like to find a confluence of technical significance when identifying support and resistance. And with this in mind, we can see

Bounce or More? A Look At Where The SPX Rally Headed

In my last comment about the S&P 500, I argued that as long as a demand zone at 1986-1953 held the stock market would stay on course toward higher highs. That area of technical support failed and SPX sold off sharply; 1986-1953 now represents technical resistance. After the recent decline, it’s time to reassess. On Wednesday SPX put in a substantial bullish hammer candlestick (small real body, longer lower shadow