12/31/2016 – just updating the ‘trade of the year 2016’ from August. I’m updating it because, right now, at the end of 2016 I don’t have a CLEAR CUT pattern. This triangle worked out grandly … we’ve hit a sentiment extreme in the Gold and EURO pessimism world so probably time to start throttling it back a little. We’ll see …
if anyone has some trade investment of the year ideas they would like to share – hit me. again, I’m simply looking for a PATTERN. the ‘trade of the year’ is a PATTERN not what I ‘believe’ but what I ‘see’ …
put the next 3 charts in context … they are an update to the post from August. Study the post all the way thru …
as always, rock on, ok?
HAPPY NEW YEAR!
you wait, patiently, for opportunities to appear which “change the game.”
as many of you have been following me know, the swing patterns that we watch take some time to develop … in this case a thesis is made for the “trade of the year” to be SHORT EURO vs USD.
what do we have working?
here you go …
note, the MATH stopped the decline of the EURO and we are carving out – almost exactly – the same pattern that appeared at the all time low of the EURO after it was introduced. if you take the time to measure the moves …(I have) you’ll find the swings are almost exact. the LAST TIME the EURO did this it EXPLODED in a multi-year advance that crushed the dollar. is that going to happen again …?
have no idea … but the “rule” from the great land of the CMT is that the consolidated triangle breaks in the direction of the trend going into it …so, in this case, the EURO “should” breakdown against the USD. As shown from the lows in early 2000 .. it certainly didn’t do that. but here’s the daily … and remember the triangle has 5 legs labeled a,b,c,d,e ..
here’s the dollar index pattern:
note we have an AB-CD present, a .618/.786 overlap and a 1.612 extension present. THIS COULD BE THE SUPPORT TO CATAPULT THE DOLLAR HIGHER …just a pattern.
it’s just a pattern but the probability that we are in the final ‘e’ leg of the 1.5+ year consolidation of the EURO is high … this is POTENTIALLY a monster move coming ….
let me know if you have any questions …
PS – here’s the geometry of the consolidation .. one line oriented w/ price and time and 90 degree angles created this trend line. (I am writing this before I draw it – cheers)
IF you take the time to study this – and why not if you subscribe to my blog you’ll find that MOST if not ALL the major pivots occurred around the construction of this simple square.
Here’s a great picture from Mr. Joe Dubs:
here’s the monthly square:
again, only one line created these trend lines and it was the low to high and then 90 degree angles. folks, take the time, defy human nature and prove it to yourself …look at the geometry present.
the other thing you can do, if you REALLY want to dig deep is to use the box height and widths to create the time cycles present in the EURO or any security. but I’m tired, it’s late …just think A^2+_B^2=C^2. perhaps there was something to Pythagoras and the Music of The Spheres …or not.