Other markets on May 22, 2018: outlook


Here are my discretionary thoughts on forex, commodities, bonds, and cryptocurrencies. I only trade the stock market.
Go to the homepage for my latest thoughts on the markets.

Thoughts

  1. USD near resistance, Euro and Yen near supports.
  2. Gold and silver’s risk:reward is becoming increasingly bullish.

4 am: USD near resistance, Euro and Yen near supports.
The U.S. Dollar index has arrived at its resistance zone. It might go up a little more, but the short term risk:reward favors the downside.

Here’s an update for the EURUSD, which is driving the U.S. Dollar Index

Meanwhile USDJPY is approaching its trendline resistance.

4 am: Gold and silver’s risk:reward is becoming increasingly bullish.
Gold and silver’s correlations with the USD remain extremely inverse.

You can see that silver’s inverse correlation with the USD is weaker. This means that silver’s price action is stronger (more bullish).

Picking an exact $ target for gold and silver’s bottom is impossible. Trading is about probability and risk:reward. The USD has a 50-50 chance that it will go a little higher in the short term, which means that gold/silver have a 50-50 chance that they’ll go lower in the short term. But since the USD’s risk:reward is increasingly bearish, gold and silver’s risk:reward is increasingly bullish.
Read Other markets on May 21, 2018: outlook

Bottom line

I only trade stocks. These are just my thoughts and outlook on other markets.

  1. Gold and silver are in bull markets.
  2. I’ve decided to buy some gold and silver as long term investments.
  3. The U.S. Dollar is in a bear market.

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