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The lower left inset chart below was put together this weekend for Premium Members. Traders have created a rather large "fish mouth spread pattern" again at (3). The same fish mouth spread took place in 2009 and 2011, resulting in large U.S. Dollar rallies.

Currently another large spread is taking place among traders, while the Dollar is near rising support and only 32% of investors are bullish the Dollar.

 

 

In the past this fish mouth spread was spot on in suggesting a Dollar rally was close at hand and the rally put pressure on risk assets. When it comes to portfolio construction, this spread was sending a cautionary message to investors in the past!

Will the results be any different this time?

 

(c) Kimble Charting Solutions
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