Today’s Dow weakness did a number of things for me not the least of which is get me flat as I saw the YM (Dow futures) tumble through 13,100.
The risk on environment had been much of what had been the fuel behind the follow-through in my trades and now I have to accept the environment has changes and gone negative for the first time since early summer.
In this video (which runs about 18-minutes) I get into detail about the how and the why of this analysis. It will shape my trade selection as well as time frame selection for likely the remainder of the year.
Understanding Dow, dollar, and crude oil movement is important for forex traders and if you’re like me and trade both it makes for terrific intermarket confirmation; at very least it gives you a way to gauge the risk (aversion or appetite) in the market.
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