Dave Floyd
Aspen Trading Group
Good morning traders.
Well yesterday's speech by Janet Yellen provided once again that the markets are far more interested in 'free money' than fundamentals.
You can work yourself up into a lather about how nuts this all seems, but that does not make for winning trades. In due time, normalcy and rational thinking will return to the market - it always does. Look back no further than 2000 and 2008.
In the meantime, we have been served another curve ball - how we handle it will determine our next set of trades.
While I was looking for the Dollar Index (DXC) to rally overall prior to yesterday's speech, that is now being called into question.
If DXC fails to hold around 94.97 and certainly cannot trade below 94.58, lower levels are in the cards.
Frankly, when Wave 2 pulls back as far as the .786 retracement, it often suggests that we are not starting a new 5-wave move higher/lower.
Time will tell.
Well yesterday's speech by Janet Yellen provided once again that the markets are far more interested in 'free money' than fundamentals.
You can work yourself up into a lather about how nuts this all seems, but that does not make for winning trades. In due time, normalcy and rational thinking will return to the market - it always does. Look back no further than 2000 and 2008.
In the meantime, we have been served another curve ball - how we handle it will determine our next set of trades.
While I was looking for the Dollar Index (DXC) to rally overall prior to yesterday's speech, that is now being called into question.
If DXC fails to hold around 94.97 and certainly cannot trade below 94.58, lower levels are in the cards.
Frankly, when Wave 2 pulls back as far as the .786 retracement, it often suggests that we are not starting a new 5-wave move higher/lower.
Time will tell.
DXC
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