Swinging Into September Dear Savio, Last week we had our eye on the dollar to see if it would bounce or not due to that hammer candle. It started off strong on Monday, August 24, but could not continue upward. On Friday afternoon, the dollar came down to test the recent lows. Below is the daily chart for the U.S. Dollar Index (DXY). 
This is a huge technical level for the dollar to watch this week. If it cannot hold these lows, the dollar can push all the way down to $89. We could go back to levels we have not seen since 2018… and that would likely have a big effect on gold and oil. For example, a weak dollar increases the cost to import oil, causing oil prices to rise. A falling dollar will lower our purchasing power internationally, and that will affect consumers. Below is the weekly chart for the DXY. I have drawn trend lines so you can see where the longer-term support is if we do not hold here. 
We’ll also see a major move in gold if the dollar cannot hold here. Gold started the week out on some weakness but gained momentum on Friday following the Federal Open Market Committee meeting. And so this morning, I recommended turning our position on Yamana Gold Inc. (AUY) into a strangle. We were already holding the AUY September 18th $5.50 Put Options (AUY200918P00005500). Now we also own the AUY October 16th $8 Call Options (AUY201016C00008000). I will continue to monitor gold this week and will recommend some new swings if it continues its strength. As you can see, we’re at a major technical level here, so we want to wait to see which side of the line it wants to stay on. Now, let’s review some of our current open trades… INTC Strangle The Dark Pool prints had been pouring in for weeks… and Intel Corp. (INTC) finally started to move up last week – and that’s good news for the bullish side of our Intel strangle. Take a look at all the Dark Pool activity from July 27 through August 26. 
Add it up and that's more than 50 million Intel Dark Pool prints. This is the biggest level I have ever seen. Now you may be saying, “Then where’s the big move?” Here’s the thing: The big institutions will not move a stock until they are done entering their position. It can be frustrating if we have options that are decaying. I teach my students to roll their options to buy more time when this sort of thing happens. However, Intel looks like it may be finally ready to run here. You can see volume increased on Friday as shares broke above $50. 
This week if Intel stays above the $50 price level, I will likely recommend adding to our calls, picking a new strike price and expiration date… so stay tuned for that. WFC Strangle There was a lot of new massive Dark Pool activity that came in this week on the Financial Select Sector SPDR Fund (XLF) as well as on many of its top components. So I’m still watching Wells Fargo Co. (WFC), waiting to go bullish and add onto the call side of our strangle, if the stock can close above $25 level. I would turn bearish at this point if Wells Fargo stock were to go below $24. Below is my Wells Fargo chart on showing you those levels. 
BTI Stock Our trade on British American Tobacco PLC (BTI) is holding above the massive Dark Pool prints, which is bullish. It went down to test those prints this week, which is a popular pattern, and it bounced right off of them. 
I would like to see British American Tobacco break above $34.50 this week, which would most likely push it up to $35.50. See the chart below where I have drawn my trend lines. You can see it has been stuck in a wedge. 
Quite a few new exciting Dark Pool prints have been coming in over the last weeks that I am monitoring. I would love to recommend some new swing trades for you to take. I am just waiting for some major levels to be broken first. I am hoping that will happen in the beginning of this week. Until then… Happy trading!
Stefanie Kammerman,
Editor, Dark Pool Trader
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