SMT Divergence

Question 1

Dollar: What is Risk On?

Answer 1

1. Dollar is Bearish
2. Foreign Currencies and Indices move bullish.
3. If dollar is going lower it’s going to be very easy for other markets to rise and
   a. your buy models can be trusted.
   b. Your institutional order flow when it’s bullish can be trusted,
   c. your discount arrays can be trusted.

Question 2

Dollar: What is Risk Off?

Answer 2

1. Dollar Bullish
2. Foreign Currencies and Indices move bearish.
3. If dollar is going higher it’s going to be very easy for other markets to drop and
   a. your sell models can be trusted.
   b. Your institutional order flow when it’s bearish can be trusted,
   c. your premium arrays can be trusted.

Question 3

Dollar: Is in a Consolidation?

Answer 3

1. That makes it difficult to find a clear direction.
2. Markets may create a Seek & Destroy profile.
3. Go and enjoy your day!

Question 4

Intermarket Analysis: What markets do you need to observe?

Answer 4

Nasdaq, Dow Jones, SP500 and DXY.

Question 5

What is a symmetrical market?

Answer 5

1. When we see a lower low in the NQ, DOW, ES and a higher high in the DXY.
2. If at any time we see one of them crack, it’s telling you that there’s a sentiment shift unfolding.

Question 6

What is a asymmetrical market?

Answer 6

1. NQ, DOW, SP500 did a lower low.
2. DXY did not.
3. This is a SMT divergence.
4. A sentiment shift may be unfolding.