Sunday, September 23, 2007

Charts Of Interest

The Canadian Dollar has been on a tear!

Above is a chart of the 10 year yield. As you can see the one third retracement level is being tested.

Both the XAU and HUI index are testing the highs from last year..

FXI continues to be one of the strongest markets in the world. Note how well the oscillator identified all the major buys over the last few years.. Next time we get a dip and the oscillator is in the buy zone, I'll be a buyer!.


kk said...

Hi Kevin,

An accelerated increase of CAD seems to me that CAD will drop in the near term. And the 16% drop of USD/CAD also indicates a reverse in the short term. Really want to know what is your opinion on this It's really wonderful to see you come back. Hope you could also update your FX blog if you notice an entry point. Thank you so much!!!

kk said...

FXI's increase is really amazing. However, the Shanghai index is more unbelievable. It surges from around 800 to 5400 in around 2 years. Not sure how far it can still go. Someone in China told me that 10000 can easiliy be reached. However, I think if it goes to that point whithin a year, then we can wait for a crash! By the way, I found that FXI might be a leading indicator of the Shanghai index. The May drop of SH index didn't find prelude or echo in FXI. I think it might be validate to assume that if FXI doesn't drop with the SH index, then it is a great oppotunity to buy SH index the time it drops. What do you think?

Kevin said...

Hi KK,

At times I have noticed that FXI leads the Shanghai and at other times it lags... It's hard to say if FXI is a reliable indicator at this point but I'll keep an eye on this relationship..

I don't see any entry points or trades in CAD but if I do I will most likely post my comments on this blog not my currency blog. The reason I created the currency blog is because I thought it would be easier to keep currencies separated from stocks, but it's actually more work for me so I'll post all my comments on this blog.

kk said...


Thank you so much for the reply!
I am actually thinking about shorting EUR/USD around 1.415. The Williams R(10) indicator you used before shows overbought of this pair; the 5th wave equal 1st wave rule imply that the 5th wave may end at 1.4185. I know in the long term dollar should go down, but short term it can correct high. What is your opinion on this? Thank you so much!

sally said...

Hi Kevin-

Which RSI is it that you are using on the FXI chart? When I look at Prophet charts there's RSIx, RSI Wilder and a few others. Also is it the bar period that you have at 3?


Kevin said...


I really don't have an opinion on the Euro at the moment...Sorry


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