Terry Shaunessy CurrencyShares Euro Trust FXE-N BUY Dec 16, 2016

(A Top Short July 19/12. Loss of 100%.)

This tracks the euro versus the US$. Technically this is basing. He likes to see stuff that has had a fall and is now starting to form a base. That is usually the beginning of what could be a positive move. There is also a little bit of “fundamental” in this play as well. He has taken a half position to start. If the Fed becomes a little more dovish than they implied in late 2015, the US$ might just pull back a little bit. Meanwhile the euro might be a little bit on an upswing. Thinks the euro is an OK place as a safe haven, at least for the short term if this market continues to act erratically.

(A Top Pick Feb 2/16. Down 2.04%.) He has been reducing his US$ exposure. One way to hedge a declining US$, is to have exposure to other currencies. This ETF is the euro currency. Chart shows a downtrend in 2014 and now it is basing. You can buy this within the base, but try to buy it close to the bottom of its channel, the low $100 area.

Currency and Currency ETF’s is something he follows very closely. Has used this in the past, but doesn’t have it at the moment because as long as quantitative easing is occurring and there is some question as to how negative rates will be, that is not really positive as far as their currency goes. Currency SH BR Pound Sterling (FXB-N) looks much more interesting.

Chart shows a neckline formation. There is a rise in the euro this year as the US$ has been going down. The seasonal period for the US$ is towards the end of the year. Unless this is in the seasonal period, he is not going to do anything. Wait for it to break 3% above the neck line.