Maybe time to buy the dollar now...right now?

In a recent post, I outlined a trade idea that had to do with buying the dollar when it touched the upper linear regression trend line. If you haven't/didn't read the post, here it is. Coming up with ideas for trades can be a very helpful exercise but being flexible and nimble in your forecasting is a prerequisite for successful trading. Unfortunately, the Eur/Usd pair has not rallied back to my entry target but that's okay because I can tell when I'm wrong and I was wrong...at least for the time being.

Here's an updated 4 hour chart of the Eur/Usd pair:As you can see from the above chart, the Eur/Usd did not hit it's upper regression trend line. Although that would have been an excellent entry, it's not mandatory for a good short entry into the pair (short being long the dollar). Actually, my trend following system just flashed a sell signal and I've taken a small position with the intention of adding to it if it starts making money.

Below is the same chart as above but, it's zoomed in so that you can easily see the sell signal. Here it is:The red circle outlines the sell signal from my system. Notice that both lines around the price are red (this is the multiple trend following systems signals) and the bottom histogram (BB width) is above it's break out zone (the purple line). These signals tell me that it's probably time to sell the pair (buy the dollar) because it's the path of least resistance. We'll see how it plays out...because nothing is even close to a sure thing and my trend following signals are certainly not an exception.

On a different note, here's my weekly ranking with the CNBC portfolio challenge. Like I said, I'm not actively managing my portfolio anymore, I'm just going to let it play out. As you can see, I finished the week in the top 0.2% of the challenge but I've actually fallen back to the 961st position...apparently lots of participants had huge gains on Friday because I actually had considerable gains but still fell back position wise. Here's a screen shot of my ranking:
Next week should be really interesting, both with currencies and stocks, and I look forward to posting some opinions on the price action. Be careful trading because we seem to be at a potential turning point...especially with stocks.

Good luck out there.

TLT