Monday, 23 April 2007

New Markets: Loonie and Greenback

COTs Timing works for currencies, too. I'm expanding my coverage to include the Canadian Dollar and U.S. Dollar Index.

The loonie gave a sell signal on April 13, when the large speculators reached an extreme level of bullishness that in the past has usually given profitable sell signals. This trade has worked best on a four-week delay, meaning the sell should be executed for the open Monday, May 14.

Note that the Canadian dollar sell signal coincides with recent sell signals for crude oil and the Canadian Energy iUnits ETF.

The U.S. Dollar Index has been on a sell since Oct. 2006.

For more details on both setups, check the updated "Profits/Results" page in the right-hand column.

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