Dollar, Gold

I have posted frequently in the last 8 week the Autobot's software outputs in relation to the Dollar, Gold, several Dollar crosses and to a lesser extent equities. In short, the outputs indicated on a daily/weekly basis time series, the trend of the Dollar was up, and provided specific targets to the rally in the $DXY and the EURUSD i.e $DXY target $80.30 and EURUSD 1.40. I am pleased with the call as it was made when the EURUSD was trading over 1.51. Currently it appears the EURUSD cross will spike lower than 1.40 but not much more than 1.3910-1.3984. Gold also dropped from $1180 to $1075 basis Feb futures which was also a profitable call. The Autobot's outputs call for lower lows in the $1060 area though lower targets in the $1010 area are quite possible. These targets will need to be adjusted when FEb's roll. As Semi mentioned sometime ago, equities seem to be decoupling from the intra day movement of the Dollar. Therefore, the opinion stated here that lower equity prices has been wrong, or at least off from a timing point of view. The Autobot has been short several ETF's IWM, IYR, DIA and Equites: CSCO, ORCL, TIF, IBM, OIH for some time. As leverage is not employed and the trades are of longer time frame view, the only damage to the account is a very real and great loss of capital opportunity. In short, capital has been tied up for too long, and several of the positions are reaching their time stops in the next several days. Due to the continued tightening of daily ranges in the equity markets, the Autobot will deploy more cash towards swing trading and intra day trading.

thanks for continuing your thinking out loud here... personally, i would not say the markets have decoupled with currencies, but the time rubberband between the two is stretching for a while, and the relationship is not just to one currency, but to all - so it takes some interpolating. we saw for a while very good corr to eurusd, then eurjpy was better- best to weigh the aggregate FX action and volume. or, as speculated in my previous post - watch gold for now.