From the Desk of Ian Culley @IanCulley

What do you do when the party gets out of hand?

You raise the roof!

That’s what the Bank of Japan (BoJ) did yesterday as its former yield curve control policies became untenable. After intervening to keep its 10-year yield below 0.25%, it shifted the ceiling to 0.50%. 

Naturally, the yen responded in earnest. It posted an explosive rally following the BoJ policy shift, gaining more than 500 pips against the dollar. 

But where does that leave the USD/JPY heading into 2023?

This is the video recording of the December 2022 Mid-month Conference Call.

We discussed:

• The S&P500 & DJ Industrial Avg below overhead supply
• Median Stock is above Key Long-term Support
• Consumer Staples & Low Volatility Stocks outperforming
• Performance of Sectors since Stocks Bottomed June 16th
• Waiting for an expansion of the new highs list
• The implications of a stronger Japanese Yen
• Dollar weakening vs Developed Market & Emerging Market Currencies
• 4-year Presidential Cycle Bullish Sweet Spot
• Small-caps to buy that are outperforming
• Bonds making new highs
• Interest rates impact on Growth Stocks
• Which Energy Stocks To Buy Now
• The relentless bid in Gold & Precious Metals
• Which Gold & Silver stocks to own
• Sugar and Soybeans breaking out
• Copper Underperforming Gold
• Chinese Stocks leading the way
• European Financials outperforming U.S. Financials
• Industrials Leading - which ones to buy
• Mega-cap Healthcare as a defensive trade
• ...

All hell seems to be breaking loose at the BOJ.

I'm not going to pretend to know, or care. But I can tell you that Yen traders like it.

And investors in precious metals sure as hell love it.

These are good things to wake up to if you're long gold and silver:

It's the weekly currency edition of What the FICC?

The forex and futures markets will provide bountiful ways to trade a weakening dollar.

But what's the best option?

Check it out!

From the Desk of Ian Culley @IanCulley

The forex and futures markets will provide bountiful ways to trade a weakening dollar.

Unfortunately, some of our initial attempts to capitalize on dollar weakness have fallen flat. 

We’re not surprised – especially since market conditions remain challenging. But that won’t deter us from moving forward and finding the best trade setups.

As always, a viable trade comes down to two critical components: a well-defined risk level and a risk/reward profile heavily skewed in our favor.

And, of course, you know how much we like relative strength. 

That brings us to a vehicle that challenges the definition of "currency." 

That's gold.

Contrary to popular belief, I don't know what the market is going to do next.

I have no way of possibly knowing if the S&P500 is going to double from here or if it's going to get cut in half. Gold can go to $5000/oz or $5/oz. Crude Oil can go to $250/barrel or $2. I just don't know.

We all have our 'opinions', sure. I mean, how can we not? We're humans right?

But we're making decisions with unknown information.

It's the weekly currency edition of What the FICC?

Today we're highlighting three critical levels with huge implications for the US dollar.

Check it out!

From the Desk of Ian Culley @IanCulley

The US dollar Index $DXY is running into support at a shelf of former highs. 

How it reacts will influence how stocks fare heading into the year-end.

Let’s check out three charts and three levels to monitor.

This is the video recording of our December 5th Monthly Charts Live Strategy Session

I continue to wonder what people are so angry about.

More and more stocks keep going up.

Fewer and fewer are going down.

More sectors are participating.

More countries are acting strong.

What's the problem?

It's the weekly currency edition of What the FICC?

Today we're turning our attention to key commodity currencies for insight into the US dollar's next directional move.

Check it out!