That is exactly what happened. Take a look\u2026<\/p>\n
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Now, with the dollar hitting our downside target and approaching support, it\u2019s reasonable to expect a short-term bounce in the buck. A move back up towards the former support line near 93 \u2013 which is now resistance \u2013 wouldn\u2019t be too much of a surprise.<\/p>\n
But\u2026 and this is the really important point\u2026 any bounce in the buck right now is likely to be temporary.<\/p>\n
Take a look at the MACD indicator<\/a> at the bottom of the chart. It has been falling right along with the decline in the dollar. That tells us the intermediate-term downtrend that began in November is strong and is likely to continue.<\/p>\n So, following any short-term bounce, $USD is likely to start falling again. And that\u2019s a big problem.<\/p>\n You see, the low in November was the lowest level in $USD in the past three years. Breaking below that level would be a major breakdown.<\/p>\n Just look at this longer-term chart\u2026<\/p>\n You can see how important the first line of support is for the buck.<\/p>\n Breaking below the 91.50 level brings the 88 support level into play. That would be the lowest level in three years.<\/p>\n So, if you\u2019re tempted to bet on a dollar bounce right now, then go right ahead. Just don\u2019t stay in the trade too long. The intermediate-term outlook remains bearish.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n Today, readers mull over Jeff\u2019s latest blog trading action\u2026<\/em><\/p>\n Your blog posts about General Electric (GE)<\/a> and \u201cGolden Observations<\/a>\u201d popped up. Perfect timing because it matches my thoughts.<\/p>\n With gold moving well and miners lagging, I was nervous. But with it moving sideways, I am encouraged. Crept up on $1,296 and didn’t reverse. Next is $1,310. We are set up.<\/p>\n Everyone has a foot out the door. Will it bust loose and then a nasty shake? Guess we will find out!<\/p>\n Been watching GE since you mentioned it as well. Looked really good and down a bit premarket looked better. Bought the calls you recommended this morning and sold puts earlier. I think people are going to like this if they watch carefully.<\/p>\n \u2013 Marty B.<\/strong><\/p>\n<\/blockquote>\n <\/p>\n Just wanted to let you know I think you’re right about GE. Due to family activities, I wasn’t able to enter the position until earlier today but that actually worked to my advantage and I got in at a better price, so I had a small gain at the close of the market today.<\/p>\n Your recommendations have done well for me this past year and I am anticipating an even better year in 2018 as I think it inevitable that volatility returns to the market.<\/p>\n \u2013 Scott S.<\/strong><\/p>\n<\/blockquote>\n <\/p>\n And respond to another of our popular holiday features\u2026<\/em><\/p>\n I enjoyed your succinct observations on the Social Security system<\/a>. I am retired now for two years and considering what I paid into it over the last 45 years, my SS income almost seems like a slap in the face.<\/p>\n The problem is that Social Security is a massive, government-sponsored Ponzi scheme. Current beneficiaries are supported by current employees’ FICA withholding. As a Baby Boomer, there are not enough Millennials and Gen-Xers working to support the larger Boomer demographic.<\/p>\n I wasn’t counting on Social Security in retirement, but I realize that I am likely the exception, rather than the rule. Thanks for your part in helping me grow my investment portfolio.<\/p>\n \u2013 Mark E.<\/strong><\/p>\n<\/blockquote>\n <\/p>\n As always, feel free to send in your trading stories, questions, and suggestions\u00a0right here<\/a>.<\/em><\/p>\n 2018 will be the year legal marijuana booms.<\/p>\n Even Doug Casey, founder of Casey Research, is convinced the \u201cGreen Rush\u201d is for real. And next Wednesday at 8 p.m., Doug will join globetrotting crisis investor Nick Giambruno at the Marijuana Millionaire Summit.<\/p>\n During the summit, Doug and his team will discuss the best opportunities in marijuana, including the top 5 pot stocks for 2018. To claim your spot at this event, for free, click here<\/a>.<\/p>\n![](\"https:\/\/jeffclarktrader.com\/market-minute\/wp-content\/uploads\/sites\/19\/2018\/01\/Screen-Shot-2018-01-04-at-11.15.55.png\")
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In Case You Missed It\u2026<\/strong><\/h2>\n
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