Hello everyone, I hope you had a great week!
There have been the usual fluctuations in asset markets with some more pronounced gyrations stemming from US President Donald Trump’s recent commentary concerning a global trade war. As volatility increases it is essential to have a clear trading process to help you weather the storm and stay on the right side of the trade!
At the time of recording on 31st January 2018, the US dollar index (DXY) was at a 3 year low, trading below 90, and was down almost -15% from the high recorded a year earlier. But our Checklist process provided an early warning that the bear market had run its course and suggested that it was now time to start looking to get long - a truly anti consensus idea at the time. Having been negative on the greenback for some time before this signal, we were amongst one of the first investors to correctly identify the bottom in the dollar.
If you pull up a chart of DXY, you will see that my analysis pretty much coincided with the low (it has rallied more than +7% since to recover almost half of the decline from the previous peak). This was undoubtedly one of the more satisfying trades this year, and arguably our most important call in determining the shifts in other key markets which are largely dictated by the dollar.
If this has sparked your interest in how Lex and I approach the market then head to the Million Dollar Traders Course and also check out our Trading Club - you can even get a FREE no commitment trial there!
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Until next time,
James Helliwell | Chief Investment Strategist
Disclaimer: Our service is intended for educational and informational purposes only and should not be considered investment advice. Do not make any decisions based on the articles and material presented on www.lexvandam.com and never trade with money you cannot afford to lose. We cannot be held responsible for your trading results. For more information, please check Risk Disclosure - T&C.