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Monday, August 21, 2006

Blogger seems to be cooperating now. Here is a chart of the US DOllAR

Notice how the seasonal trend is heavily down from here on out. Also, we are in a downtrend, with a rally against the trend. The commercials are in middle ground, but are heading toward the short side of this market.

If we can get a small rally, or even sideways move, with the commercials shifting to the short side during that period, we will have a nice short sale setup.

Once that happens, just look for short term pattern entries on the short side to enter the trade.

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