\tSince then, $USD has moved sharply higher. Take a look…<\/p>\n
\t![\"\"](\"http:\/\/assets.jeffclarktrader.com\/ee-assets\/channels\/articles\/Screen_Shot_2017-10-03_at_08.22.52.png\")
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\tThe buck has bounced all the way back up to where it was trading in late July. And it’s been a pretty good bounce off of the bottom.<\/p>\n
\tBut now, the dollar is approaching resistance. And, if history is any sort of a guide, the dollar is unlikely to break through this resistance level on the first attempt.<\/p>\n
\tLook at how a similar pattern on the chart played out in 2016. The dollar bottomed in early May last year. The rally off of that bottom ran into the resistance of a previous high. Resistance held, and the dollar fell back and formed a higher low. It took another month before the dollar was able to break out above resistance.<\/p>\n
\tI expect we’ll see similar action in $USD this time around as well.<\/p>\n
\tThe buck has enjoyed a good bounce. Now, though, it’s time for a pause. The dollar is likely to pull back soon and take some time to form a higher low on the chart. A couple of weeks of back-and-forth, choppy action will help the buck build up enough energy to break above resistance on the next attempt.<\/p>\n
\tBest regards and good trading,<\/p>\n
![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
<\/div>\n\tJeff Clark<\/p>\n
\tP.S. <\/strong>What are your thoughts on this year’s action in the dollar? Will we see the same sort of rebound that played out last year?<\/p>\n \tSend me your thoughts, along with any other questions or suggestions, right here<\/a>.<\/p>\n \tIn today’s Mailbag, a reader responds to yesterday’s essay on the death of market clichés<\/a>…<\/p>\n \t\tJeff, very good summary of all the “known” seasonal things that don't seem to work anymore, at least this year.<\/p>\n \t\tTwo possible reasons; firstly the huge sums of money that the central banks have printed that are going into stocks because fixed-income and savings accounts pay nothing; and secondly the unrest in most of the world makes our markets look safe to outsiders causing a large inflow of funds that has to go somewhere.<\/p>\n \t\t–<\/strong> David<\/strong><\/strong><\/strong><\/strong><\/strong><\/span><\/p>\n<\/blockquote>\n \tAnd another responds to last Friday’s essay, dealing with the influence of market makers<\/a>…<\/p>\n \t\tRegarding Ryan’s question as to market makers…I think that sometimes it just takes a bit of patience with them. It also helps to check volume as to trades that move the market up or down. It seems to me the market often moves considerably while only one contract has been executed, so waiting seems to help.<\/p>\n \t\t–<\/strong> Phil<\/strong><\/strong><\/strong><\/strong><\/strong><\/span><\/p>\n<\/blockquote>\n \tMeanwhile, one reader took Jeff’s advice on giving trades time to work back to normal conditions…<\/p>\n \t\tGood news, Jeff! Despite the recent put option trade falling almost immediately after your recommendation, I took your key points<\/a> and got in at $1.28, which is really $1.20 after the $8 commission.<\/p>\n \t\tI can't use margin on naked puts at the two big brokers I use, so, like many of your subscribers, I need to be careful with quantity because I don't like tying up thousands of dollars just to make $100 or $200 when there are other ways to make even more.<\/p>\n \t\tBut you wrote recently about importance of selling puts to stay profitably with options and earn cash, so I'll do the ones that have a lower stock price and don't tie up as much capital. I had a feeling I could sell for $1.28 or maybe even $1.30 if I waited until end of today, using limit orders, since you explained why the market may rise or stay up till EOQ, and gold stocks tend to fall when the S&P 500 is rising and market is “Risk On.”<\/p>\n \tReader Mailbag<\/h2>\n
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