A strong dollar means weak gold. Take advantage of inter-market relationships to find trading opportunities. ABX from the WL set up a low risk short today. Friday I shorted GOLD from the pre-market gapper list.Anarco had a great day today. Check out his trades here.
2 comments:
There is so much to learn from you. Can you give a few more examples of inter market relationship?
Hey Day tradr,
Relationships between 4 major financial markets: stocks, bonds, commodities and currencies. In theory under normal market conditions there are inverse relationships between USD and commodities as well as bonds and commodities. There's a positive relationship between bonds and stocks. Gold in particular, is a hedge against a weak dollar. So now that oil and other commodities are weakening, the dollar is bouncing and stocks are in rally mode.
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