10 Buck Chuck

I think we are about to elevate the status of the dollar to 10 Buck Chuck from 2 Buck Chuck. It has been trading like that awful $1.99 wine at Trader Joes for quite some time. I have been talking recently about a pattern setup for a long entry, and it is really right here. The pattern is basically a fake out to new highs or lows ( lows in this case ) that is reversed the very next day. We also want some type of divergence to be present.

The red horizontal line shows the most aggressive entry for this trade, which is really just trading around that price still today. We are forming potentially a higher short term low today. A breakout of todays high tomorrow would be another entry that is valid and one I will likely take. I know we all decided that once again no venture no matter how lame, cannot fail so we bailed out a resort in the middle of a desert. Of course, what a great idea, build something that requires a ridiculous amount of water in a place where people can barely get to. On top of that make sure when they can't pay their bills that we keep loaning them more money.

What about the water shortage? Is this a good use for precious water, a bankrupt desert developement in bum f.... Egypt? At some point bad investments have to fail, until we allow that to happen we are nowhere near out of this difficult period. At least it does not appear this was done to bail out and enrich a union, but who knows.

We saw the short term effect on the dollar when this news broke. This market is the short squeeze of the decade waiting to happen. The whole world is short this market. The only people I know going long this market are some of the worlds best traders. Of course up to this point they have been wrong and are losing. Over time though some of the people I know that are buying this are rarely wrong for long periods on things. This trade is worth a short due to the tremendous upside explosion that is possible.

You can also see that the oscillators are also close to all being long, so this is ready for liftoff.