The Comeback

FAKE-OUT - So I know the Dollar made a nice little comeback in Monday trade, but I still don't believe this is 'The Comeback' that we are all expecting. I have seen such price action many times before when a market is in a major correction, looks like it may be ready to resume its trend, before faking everyone out and continuing to correct lower. Of course I can't say for sure, but this smells like that type of price action and I suspect the Dollar still has another leg lower before we see it actually start to mount a meaningful trend resumption. So I wouldn't be too quick to jump back on a Dollar long at the moment and would recommend waiting a little while longer. I have been sitting on the sidelines for some time and am looking forward to jumping back in, but it just isn't there yet.

EXHAUSTING - I know it can be difficult to be on the sidelines, waiting for a trade. Even I get frustrated with the lack of action if a trade doesn't come for a couple of weeks. Frankly, it can be even more exhausting sitting on the sidelines with no trade on, than keeping tabs on an open position. But find comfort in the fact that this is the way the market is and know that good things come to those who wait. Otherwise, there really isn't all that much to talk about. I'm still waiting to see if stocks stall out again, and I have also been intrigued with the recovery in GOLD. A daily close above $1225 opens the door for fresh upside back through $1300 and strengthens the prospect for the formation of a longer-term base of the 2014 low at $1130.