Elliott Wave 5.0 "Reboot"

Wednesday, January 4, 2017

US Dollar Daily Chart, Another Potential Bull Market Top Review

This morning the US dollar made a mad dash and created a new record high at 103.820, after which  the US dollar reversed positions and then proceeded to head down.  Numerous times we tried to get a top that will hold, which is hard to do if we are dealing with an extended diagonal "C" wave.  

Of course the majority is bullish on the US dollar, but I'm sure that, that  will change once they see that the US dollar doesn't want to stop heading down.  The public or majority has no clue when a big false bull market has been in effect, especially when it is about 8 years old already. 

Just because something is extended or longer and bigger, does not mean it is in a higher degree, it is the exact opposite, as it is the smaller degree levels that come out of hiding that create the extensions. 
In the "C" wave in Minute degree I still would have a minimum of 5 degree levels that can reveal themselves.  I only use two degree levels in the chart above. 

If the "D" wave top is complete then the US dollar has to show us the way and keep going south. It can go at any speed it likes, but on a potential "D" wave top we can't take any expanded patterns, once the "D" wave has completed. 

The COT report has the commercials with a large amount of short positions so would only get worse if this USD bull market continued.  The commercials are not the speculators, as they have a different reason for what they do. 

Now the speculators are another matter, as I call them the "Trend Chasers" the emotional money mangers, and hedge fund owners. Speculators do the opposite of what the commercials do, as they are in a big US dollar bull trap. It is exactly what the majority think as well.  The fund managers hated gold a few weeks ago, and I'm sure we will see them jump back on the gold bull bandwagon. 

I would like to thank all the readers that try  my new blog as in December 2016, it broke all records of pages read in one month.  In April 2016 this blog broke all records with 22,000 pages read in one month.  

On the new blog, I registered 25,500 pages read in one month, and I like to thank all my readers that made it happen.