Thread by @AlexsOptions

$UUP $DXY / $PDBC , $CL_F , $GC_F

Macro View of the market & my personal thoughts.

( $UUP quarterly hammer = bullish bias)

A strengthening dollar is NOT good for the commodities industry & UUP was predictive from 2018 into the crash of commodities prices.

And in 2020 UUP marked the bottom for commodities with as the Covid crisis came underway.

As we're approaching the new quarter & month $UUP is attempting to put in a bullish hammer that would proceed in the direction of the yearly: the failed 2 going 3

Potentially signaling a mid-term top in commodities or at least a large part of the 'basket'.

When looking into the commodities, $CL_F has been a very solid bullish bet which has been obviously shown by the large inflows over the past year.
Even while being apart of the 'commodities basket'.
I still have a bullish stance on oil due to the fact SUPPLY will lag DEMAND..

You'll also notice $NG_F (natural gas) is coming off of FRESH All time lows.
You'll notice a 2-2 reversal on the yearly signifying that the bottom is likely in for time to come as well as a 'wedge' pattern that has formed on the quarterly.

The reason the fresh ATLs are important is because we know the #BroadeningFormation phenomenon OCCURS. And fresh ATLs means we were at the bottom of the "all time" BF which gives me a bullish stance on $NG_F going into the future. $BHP $AR are strong NG stocks

@PeterSchiff 's favorite : $GC_F (GOLD)
Gold is putting in a RED inside year, aka : Doin' Nothin'

To compliment that we're doing the EXACT opposite of $UUP (as expected) which is a shooter quarter. This only compliments the strengthening dollar hypothesis.

$PA_F (Palladium) does not look as if it wants to sustain it's multi-year move into new ATHs, putting in a shooter candle on the quarter; another compliment my view of a strengthening dollar.

You're going to notice the same types of bearish / sideways charts nearly across the board when looking at commodities including wheat, oats & more. Some weaker than others ( $ZS_F ). But overall pointing to a strengthening dollar and a 'mean reversion'

Don't get too cozy too fast though, if these commodities were to take out the previous Quarter lows and then come BACK ABOVE their respective openings we may have to prepare for the next leg of the rally.

If you guys want more 'informational' topics discussed like this using trading ideas combined with fundamental analysis / my own thoughts be sure to like & comment :)

$TNX is next

Sources :
nasdaq.com/articles/what-…

etf.com/UUP

investopedia.com/investing/natu…

worldoil.com/news/2021/6/25…

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