{"id":19403,"date":"2011-02-13T18:35:00","date_gmt":"2011-02-13T23:35:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=19403"},"modified":"2011-02-13T18:35:00","modified_gmt":"2011-02-13T23:35:00","slug":"forex-setups-in-us-dollar-index-japanese-yen-and-currency-etf","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/02\/13\/forex-setups-in-us-dollar-index-japanese-yen-and-currency-etf\/","title":{"rendered":"Forex Setups in US Dollar Index, Japanese Yen and Currency ETF"},"content":{"rendered":"

By Chris Vermeulen, thegoldandoilguy.com<\/span><\/strong><\/a><\/p>\n

\n

Over the past few years Forex traders have really had to step up their game in order to continue making money in the currency market. Back in the day before currency trading was main stream, currencies used to trend in a direction for a long period of time with a low level of volatility. But with so many individuals now involved speculating on price action coupled with international concerns in most countries, the once slow and steady currency market now moves like the stock market with large price swings on a weekly and even daily basis.<\/p>\n

With currency trading growing at an incredibly fast rate, stock traders have been giving tools to trade currencies using ETFs. If you are familiar with leveraged ETFS then you have most likely seen the huge opportunities (100,200 even 400% gains) which they can provide during major trends. Below are a couple major trends that both Forex and ETF traders should be keeping their eye on.<\/p>\n

Japanese Yen \u2013 30 year Monthly Chart<\/strong>
\nOver the last couple years China has taken most of Japan\u2019s manufacturing, creating some terrible fundamentals overall for the Yen. With a weakening economy and the Yen making a major top in 1995, I feel we could be seeing a 16 year double top forming. This means shorting the Yen for a multiyear correction (bear market). This could generate some serious gains in the coming 2-5 years with very little work.<\/p>\n

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YCS 200% Short Yen Exchange Traded Fund \u2013 Daily Chart Setup<\/strong>
\nThis fund allows stock\/ETF traders to play the currency market within a regular trading account. The YCS fund is a 200% leveraged inverse fund, meaning this fund goes up in value as the Yen declines. For example, if the Yen drops 10% in value YCS will rise 20%.
\nEveryone has seen that infomercial to cook food with the saying \u201cSet-It-And-Forget-It!\u201d Well that\u2019s more or less what this position will be like if we get a setup to buy this fund. This trade could easily last 5+ years with the potential to generate 150% \u2013 400% gain.<\/p>\n

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US Dollar Weekly Chart Setup<\/strong>
\nTaking a look at the more common currency \u201cThe Dollar\u201d. It has been forming a similar price pattern and is trying to form a base and bottom. The dollar does have one major issue which will most likely cause a breakdown thus an even lower value in the coming year. The problem is that the fed reserve constantly prints money increasing the money supply and devaluing the dollar (quantitative easing).<\/p>\n

Currently, the dollar is trading within a large range and is poised for a short term bounce. There will not be any major trends until a breakout of this trading range to either the up or down side.<\/p>\n

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Major Currency Trends for Major Gains<\/strong>
\nIn short, while playing shorter term trends is exciting and rewarding and keeps us busy on a daily\/weekly basis, it is nice to have some long term positions at work which slowly mature into large percentage gains which boost you\u2019re overall portfolio value each year with little work. Both the Yen and Dollar look like there is big potential just around the corner using the buy and hold mentality.<\/p>\n

Each year I find 3-5 major opportunities where I can put some money to work, not tie up much capital and if they move 150% or more in my favor then those small investments boost my overall yearly portfolio gains substantially.<\/p>\n

I do have another major trend setup forming which I\u2019m calling the \u201cHoly Cow<\/strong>\u201d setup\u2026 which could be a real money maker this year. The exciting thing about it is that I have not seen ANYONE talk about this investment in years\u2026<\/p>\n

Get my Trading Setups, Daily Pre-Market Videos, Intraday Analysis and Updates:
\nhttp:\/\/www.thegoldandoilguy.com\/trade-money-emotions.php<\/strong><\/span><\/a><\/p>\n

Chris Vermeulen<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Taking a look at the more common currency \u201cThe Dollar\u201d. It has been forming a similar price pattern and is trying to form a base and bottom. The dollar does have one major issue which will most likely cause a breakdown thus an even lower value in the coming year…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-19403","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/19403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=19403"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/19403\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=19403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=19403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=19403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}