Daily Market News - 23rd August 2022

The King Dollar

The Dollar is driving everything. Literally everything.

It’s been THE safe haven asset for the crash of 2022 and if you’ve missed the move, I dunno what to say.

I’ve been covering the chart for 8 long months now and as a European being paid to hold Dollars, it’s been a fairly stress free trade.

There are lots of data driven, macro economic analysts who like over complicate things and make the markets seem confusing, I’d argue my approach of using less than 10 charts (which includes the Dollar) is more accurate.

So in this weeks letter, I’m going to dig into some of those charts.

For those looking to chase some over extended names up here, I’d encourage you to watch a 2 minute clip below which was provided to our members LAST week in our Midweek Half Time where I started prepping all our members for a “pause in the action” after also correctly picking up the exact top at the start of the year and the exact bottom in the market 2 months ago.

Don’t take my word for that, I time stamp all my work - THE GREAT VALUATION RESET (5th Jan) and A VIOLENT RALLY IN THE MAKING (22nd June)

It’s not easy calling market tops and bottoms but having the understanding of when to push the gas down and when to ease off does help.

Midweek Half Time - Detailed Index Level Analysis Clip

As most of you know, I don’t use magical hindsight indicators, the market doesn’t work like that, if you’re not constantly looking forward and peeking around the corners, you’re probably doing your capital a dis-service.

So Where Will The Market Go From Here?

I have absolutely no clue and you should beware of anyone who convinces you they know.

The market could continue ripping higher and I’d be happy, it could also tank and I’d be absolutely fine.

That said, here’s what I do know.

Managing risk through a systematic process will serve you much better than timing $2 moves with $0.20c stop losses.

Dollar up, Stocks down has been the message price has been giving us all year. If the Dollar keeps going higher, what message is that giving us going into September?

S&P500 Seasonality Chart (1950 - 2022)

I’m already looking ahead to September. You probably should too.