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February 13, 2025
New 2024 Highs in the Canadian
…and no other way to put it…
I think it looks truly EXPLOSIVE
Having been in this crazy business for so many years, it can
be kind of hard to surprise me regarding the markets…But this set up DOES…to
the extent that I’ll say I don’t think I’ve ever seen anything like it.
About a month ago, I re-recommended buying the
Canadian Dollar, primarily due to the massive speculative short position in
this currency, as well as the fact that only once in modern history has it been
lower than it is now against the US Dollar…This is NOT some 3rd
world endlessly depreciating currency…The “Loonie” has long been supported by
the fact that Canada is a MAJOR GLOBAL COMMODITY EXPORTER, which represents
ongoing demand (buying) for Canadian Dollars, to the extent that roughly 90% of
the past 50 years it has been higher in value than it is today…And I seriously
doubt that is going to change.
Now take a look at this…First up, you can observe how much
higher it has been during those other 45 years…And then note JUST HOW INCREDIBLY SHORT
SPECULATIVE FUNDS ARE…VS HOW LONG COMMERCIAL USERS ARE…IN OTHER WORDS:
MASSIVELY DEAD OPPOSITE THE SPECS.
Now take a closer look…
And a little closer…
When you’ve been around this long, you know that you are
going to be both wrong…and right…AND…that you also sometimes DO “KNOW” how
certain types of situations inevitably have to unfold…and this, to me, is one
of them…When the
whole trading world is one way, you do just buy some time in the opposite
direction…and wait…for it to just totally blow up on them. And
don’t kid yourself, or overthink it…That IS what this
GAME is all about…And yeah, I MIGHT BE DEAD, DEAD WRONG, BUT I THINK THIS IS
OBVIOUSLY, AND IMMEDIATELY, ONE OF THEM.
And here are two ways to go…
I’m always saying it, but this time more so than ever, if
you think this makes sense DON’T just “wait and see a bit.” I think the fuse got
lit here today, and especially following DT’s tariff announcement…when I’m sure
many of those spec shorts were thinking the Canadian would be tanking…and IT
DID NOT.
Again…if you like this, I urge you to contact me asap…Also
to say there are LOTS of ways to do this…
Thanks,
Bill
770-425-7241
866-578-1001
All
option prices in this newsletter include all fees and commissions. All charts,
unless otherwise noted, are by Aspen Graphics and CRB.
FUTURES
TRADING IS NOT FOR EVERYONE. THE RISK OF LOSS IN TRADING CAN BE SUBSTANTIAL.
THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT
OF YOUR FINANCIAL CONDITION. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE
RESULTS. THERE IS NO GUARANTEE YOUR TRADING EXPERIENCE WILL BE SIMILAR TO PAST
PERFORMANCE.
The author of this piece currently trades for his own
account and has a financial interest in the following derivative products
mentioned within: Canadian Dollar