Well\u2026 look out below. Here\u2019s an updated look at the chart I showed you in early January\u2026<\/p>\n
![\"\"](\"https:\/\/jeffclarktrader.com\/market-minute\/wp-content\/uploads\/sites\/19\/2018\/01\/Screen-Shot-2018-01-23-at-11.14.13-AM.png\")
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After a couple of days of trying to gain some footing, $USD turned lower again yesterday. It\u2019s oversold. And investor sentiment (a contrary indicator) is quite bearish on the buck.<\/p>\n
That might be enough to cause a short-term bounce. But I don\u2019t think so.<\/p>\n
Look at the MACD<\/a> and RSI<\/a> indicators at the bottom of the chart. There\u2019s no sign yet of any positive divergence. This tells us the downtrend is strong and likely to continue.<\/p>\n To me, it looks like the dollar is on the verge of a \u201cflush-out\u201d move.<\/p>\n A flush-out is that final, dramatic decline that occurs at the end of a prolonged downtrend. Investor sentiment is usually quite bearish. Technical conditions are almost always oversold. Yet, in spite of all that, the asset still can\u2019t manage to bounce.<\/p>\n That\u2019s when the last of the holdouts finally throw in the towel. They\u2019re exhausted from holding on to a position that does nothing but fall. So, they finally hit the \u201csell\u201d button.<\/p>\n I expect that\u2019s what will cause the next big drop in the dollar \u2013 which should bring $USD to its next support line, about 3% lower from here.<\/p>\n In turn, that action is likely to spark another nice move higher in gold.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n P.S. <\/strong>In my weekly option trading advisory Delta Report<\/em>, we\u2019ve been playing the dollar\u2019s plunge by taking low-risk, high-upside trades in the gold sector.<\/p>\n And so far, with wins like 155% on Goldcorp just last week, that strategy is paying off\u2026<\/p>\n To learn more about a subscription to the Delta Report<\/em>, click here<\/a>.<\/p>\n Today, some words on waiting for the right trade setup<\/a>\u2026<\/p>\n I know that good trades have been hard to find but I\u2019m okay with that. The waiting is the hardest part.<\/p>\n My biggest regrets have come after entering trades out of boredom. As a retired paramedic, I definitely had a tendency to maintain a high level of anxiety by creating chaos if necessary to break the unbearable silence, but eventually recognized that traits that are useful in one trade can be detrimental in another.<\/p>\n I am much less inclined to pursue low-probability trades now and my returns are substantially higher as a result, so I find your trading service to be a good fit for how I trade. Looking forward to the return of volatility!<\/p>\n \u2013 Paul W.<\/strong><\/p>\n<\/blockquote>\n <\/p>\n And a question about market makers\u2026<\/p>\n Could you possibly find any more naysayers who do not have a clue about your work? I admire that you take the time to respond to some of them, but enough. Time better spent with educating us on how to trade. No one does it better!<\/p>\n Please explain exactly how “market makers” work and who they work for and who are they accountable to? Seems they are an awfully powerful lot. Or, am I totally out to lunch?<\/p>\n \u2013 Charlie H.<\/strong><\/p>\n<\/blockquote>\n <\/p>\n Thanks for writing in, Charlie. Jeff breaks down the power that market makers have in this essay, \u201cTwo Cops and a Bunch of Stinking Market Makers<\/a>\u201d\u2026<\/p>\n![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
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