Financial markets have been pretty hectic the past few weeks.
And the past week has been a real humdinger, with the Rand making new mult-year 'lows' against the Dollar and Pound.
And with more Rand-moving news on the horizon (Bank of England rate decision tomorrow and US non-farm payrolls on Friday), do not expect any let up with the action.
It is at times like this, when there is extreme uncertainty, that the panic sets in for those with large Rand exposures (as I can witness to based on the emails I have received the past few days).
These fears and anxieties would no doubt have been further fueled by Cees Bruggeman's article suggesting a possible R22.50/$ by mid 2018.
Unfortunately, what mainstream economists always tend to do is take the past and merely extrapolate it into the future. But nature (and markets as part of it as a human phenomenon) does not work that way - we have summer and winter, night and day, ebb and flow, high and low tides. Everything moves in cycles as governed by Nature's laws.
And once a cycle or trend has reached an extreme, we get a new counter trend cycle.
Unfortunately, what mainstream economists always tend to do is take the past and merely extrapolate it into the future. But nature (and markets as part of it as a human phenomenon) does not work that way - we have summer and winter, night and day, ebb and flow, high and low tides. Everything moves in cycles as governed by Nature's laws.
And once a cycle or trend has reached an extreme, we get a new counter trend cycle.
For those that subscribe to our forecast service, you will know that our Elliott Wave analysis is showing the Rand actually at an extreme of pattern, with this expecting to complete anytime soon. In fact, our short term target was met earlier today with the move above 12.80 to the Dollar (see image below).
Click to see full size forecast and commentary...Of interest, it is articles just like the above that confirm our analysis that sentiment is at at an extreme of Rand bearishness - and is just the signal that us contrarians look for.
We will be looking closely at the developing patterns over the coming days to confirm that a top is in place.
If you have Rand currency exposures, this is not the time to be flying blind or being influenced by your anxieties and emotions - or looking to mainstream news, economists or bankers for direction.
What you need is an objective view that will ensure you are on the right side of the market...
...as my good client, Robert Wilmot, found out on his last two tranches of funds that he needed to convert - this is what he told me:
"By using your forecast I was able to convert my US Dollars into Rands at the correct time and got top rate – an improvement of about 18 cents on the dollar.
The last lot of money I brought in and I didn't use your forecast. It was stable around 11.30 for a few weeks so decided to bring it in. The day after it shot up to around 12. That wouldn't have happened if I had seen your forecast.
When I need to bring money in again I definitely be using your services."
Now, what about you?
...imagine what a saving of 18 cents could make to your bottomline?
...perhaps you also missed out on the last big move?
Uncertain what to do right now?
I am here to help you - in the same way as I helped Rob - exchange when you should, and don't exchange when you shouldn't.
And so I have put together this package (for new clients only) to give you the opportunity to get in on the inside track - risk free.
Simply go here now for details.
I look forward to helping improve your bottomline while saving you time, stress and effort.
To your success~
James Paynter
2 replies to "Rand at Extreme of Pattern and Sentiment"
Hi James
I really enjoy your blog and to see what you have installed for us .
I would subscribe but am only interested in the exchange rate but do not trade nor do i need it for my business therefore would not be a viable option.
If i did need it for my business i would not hesitate to subscribe.
Just some feed back from an admirer
kindest
Charles Miller
Thanks for that, Charles. Glad to be able to provide some value even for those just interested in the exchange rate.
All the best
James