AUTOREFRESH 
Like EUR/USD, Moving averages rolling over in DXY
By Jamie Coleman || March 11, 2010 at 20:52 GMT
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Yesterday we noted that the 10 and 21 day moving averages were set to cross bullishly. Today they have.
We have the same set up (just reversed) in the dollar index, where the 10 and 21 day averages crossed bearishly. Trend followers tend to follow react to theses sorts of signals.
The signals are occasionally false, but they can put you into a trend and keep you in a tend for quite a while, if followed religiously…You never get the tops or the bottoms of the trend, but you can sometimes catch the “belly” of the trend.
As Bernard Baruch is reputed to have said “Leave the last 10% for the other guy…”
Great info. Jamie. The belly is telling me 80.50/60
Interesting though that the consolidation in Dec-Jan had the same occurrence of the 10 crossing the 21 before it ran into the channel resistance. Right now that looks like it’ll be in the 1.37s.
You guys know my take: with oil over 80, and the spx looking toppy after going up on light volume and with a gap to close down 2-3% below, and with friday usually a risk off day (who wants to carry geopolitical risk over the weekend, the risk/reward ratio isn’t good), I’d say there’s a better chance that we selloff tomorrow. Maybe the market is waiting for eur/usd to get up to 1.38 so it can issue a beatdown like it did yesterday to oil at 83…
It’s all up to China now…
Ummmm…Equities continue to climb yet euro and aussie either drops or holds steady. Anybody with a degree in rocket scientist want to guess what is going to happen during the next couple of trading sessions?
And the machines. If the thesis/program is that 2010 is 2004 again, and sideways consolidations are the overarching them, then the programs will kick in to sell and buy at the edges. When we went up the first friday in february from 1044, late in the session, that seemed to be a program thing. I don’t know many traders who could have caught that falling knife going into the weekend…
Great points JR and John. Earnings season next month should be interesting. Oh wait the bean heads can blame it on the Weather when they are down.
Alexander…I agree.