Robin Ho Smartrade: US dollar index

Showing posts with label US dollar index. Show all posts

Thursday, October 4, 2018

Inflection Point

As the US indices tested their all time highs recently, we are seeing signs that the US market could be due for a major correction soon. Here are 3 signs that the US market is at its inflection point.

1) The US Dollar Index is poised for a breakout from its resistance at 95.7, towards the previous high of 97.

2) US 10-year treasury yield is testing the upper trend line of the channel and could be on the verge of a break out.

3) The Semi-conductor Index is forming a double top, and could break down soon.

All posts and charts are for educational and illustration purposes only

Friday, August 25, 2017

Will the Hang Seng and Shanghai Market Rally Continues ? It Depends On the Dollar!

Hang Seng Index has been one of the best performing index in Asia Market in 2017. Today, it close at its year high at 27848. Will the rally continues? It all depends on the USD/Rmb trend. The Dollar is trading near the year low against the Rmb , although this blog like most pundits' are expecting a Dollar rebound, would not want to bet on it with Donald Trump's scoring his own "goals" and the White House in chaos. These event has contributed to the dollar steep slide in the recent months. For these reasons this blog continue to stay bullish on the Asia Markets particularly Hang Seng and Shanghai Index. The charts below illustrates the close co-relationship between the Dollar and the China Markets. Trump's recent hint to veto the spending bill unless the Mexico Wall is funded has added to the Dollars woes. Congress must pass spending bill by 30 Sept. This blog believes that the potential Fed Balance sheet contraction when enacted will cause a Dollar to rebound and a steep market correction. Watch the Dollar direction !