President Trump Wants the USD Down

President Trump Wants the USD Down

President Trump Wants the USD Down

$DIA, $SPY, $QQQ, $VXX

DJIA +0.2% finish at a new all-time high for the 3rd session running.

Some economists warn that The Trump Administration and its economic policies will not help USD in the long run.

The .DXY rebound by up to 5% from current marks but the Buck will not benefit over time from any of President Trump’s policies.

The US Dollar (.DXY) Index has fallen 10% YTD. At the same time, gains among currencies such as EUR and GBP added to the pain.

Long term Shayne and I are negative the USD, and have been since the end of Y 2016.

President Trump continues to voice his dislike of a strong Dollar, breaking with the traditional practice of Presidents not commenting on the US currency.

“I like a dollar that’s not too strong,” President Trump said

“I mean, I’ve seen strong dollars. And frankly, other than the fact that it sounds good, lots of bad things happen with a strong dollar,” he said.

Savvy trader picked up on it and have been Short USD, Long Gold, a good trade YTD.

Thursday, USD held losses against a basket of major currencies following data that showed a faster-than-forecast increase in domestic consumer prices in August.

.DXY tracks the Buck against 6 major currencies, it was down 0.3% at 92.246 on the day. Dec Gold gained 1.50 to settle at 1329.30 oz.

Thursday, the US major stock market indexes finished at: DJIA +45.30 at 22204.78, NAS Comp -31.10 at 6429.06, S&P 500 -2.75 at 2497.07

Volume: Trade on the NYSE came in at: 856.3-M/shares exchanged.

  • NAS Comp +19.4% YTD
  • DJIA +12.4% YTD
  • S&P 500 +11.5% YTD
  • Russell 2000 +5.0% YTD

The DIA, SPY and QQQ are Overall Bullish, the VXX is Over all Bearish

HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.40) Bullish (0.40) Bullish (0.40) Bullish (0.42)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.25) Bullish (0.29) Bullish (0.29) Neutral (0.17)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.31) Neutral (0.19) Bullish (0.40) Bullish (0.35)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.47) Bearish (-0.42) Bearish (-0.40) Very Bearish (-0.58)

Stay tuned…

 

 

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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