King Dollar?

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DoChenRollingBearing

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I suspect most of us have noted that the US dollar has been strong lately. Very strong! The US Dollar Index is up some 7% since early July (less than three months), that is a BIG move in FOREX.

So even with QE, the "Taper" and all the FIAT PONZI, it is worth a look at WHAT is going on and perhaps take a stab at the future. I looked at gold, crude oil, Bitcoin and a food commodity index..., and found ALL of them down vs. the dollar in the past few months. Down hard! Lots of charts so that you can see for yourselves.

Yet, I found NO investments that were strongly correlated with the US$ going up! Yes, Treasuries are up a bit (not much) and stocks (in general) are a little better correlated, but NOTHING I found matched "King Dollar" recently.

Maybe someone can chip in with a better explanation or some niche(s) I missed?

Or could it just be that the dollar is "the cleanest dirty shirt" now? Weird!

"King Dollar?"

http://goo.gl/2GmeMi
 
You guys wouldn't be insinuating that the dollar move is unnatural, would you?
 
obama-alfred-e-newman1.jpg
 
* bump *

Dollar index breaks 100. How much higher can it go before imposing negative consequences on the fragile economy?
 
but look how much more you get for a dollar these days.
Its twice as much oil and 50% more gold

Why is anyone complaining ?
 
* necro bump *

I see the Dollar Index broke through 100 again this morning (101.46 as I type this). According to the historical chart I found (link below), it peaked at 113 circa February 2002 and 125 circa February 1985.

https://www.macrotrends.net/1329/us-dollar-index-historical-chart

Fastest horse in the proverbial glue factory? Given the roughly 95% loss of purchasing power since the inception of the FedRes (Slavery) System, the Dollar Index should have our currency pegged at zero. Or is a negative number possible?
 
The Dollar Index essentially measures the dollar against other currencies. Fastest horse, tallest midget, world reserve currency in a time of crisis. How long global faith remains in the currency might be tested if the Fed actually does print trillions of new dollars.
 
For me with my shiny based in UK£ everything is awesome with a nearly £100 upswing in 2 days taking gold back close to ATH

but man what a crazy ride .... I am up 67% on my gold deposits and down a similar amount on my silver
 
Today is what is called a reverse signal day in the dollar. The Daily Sentiment Index which scales from 1-100 100 being all are bullish reached 97 on Friday so a crowded trade yes? Today we made a new high for the move which was parabolic and we closed below the previous day's low. I don't expect the DX to trade much below 108 if we go lower from here. The stop loss is above today's high.
 
Armstrong has 120 as a high too. Some think we go to 130 or even match the 165 high. Cleanest shirt in the dirty laundry. I expect the metals to decouple from the buck up metals down at some point. Feels like the world is about to end doesn't it?
 
Armstrong has 120 as a high too. Some think we go to 130 or even match the 165 high. Cleanest shirt in the dirty laundry. I expect the metals to decouple from the buck up metals down at some point. Feels like the world is about to end doesn't it?
IMO, a high probability of a #2 Double Bottom (Market top) formation as seen on the charts prior top in 2002 could be coming.
 
If you really want to get into the weeds with the why's of the USD's rise look here...


Beyond the first phase of King Dollar (ending soon?!) I believe that commodities will come to the fore, monetary commodities first. This might start soonish...

The USD dies in strength, not weakness and this could take quite some time.
 
If you really want to get into the weeds with the why's of the USD's rise look here...


Beyond the first phase of King Dollar (ending soon?!) I believe that commodities will come to the fore, monetary commodities first. This might start soonish...

The USD dies in strength, not weakness and this could take quite some time.

If the metals are at or near a bottom would you rather be involved with mining stocks or a proxy for Gold and Silver? I have no idea where the stock market goes and would rather give up some upside in the miners if the SM tanks and the miners go south with the general market.
 
If the metals are at or near a bottom would you rather be involved with mining stocks or a proxy for Gold and Silver? I have no idea where the stock market goes and would rather give up some upside in the miners if the SM tanks and the miners go south with the general market.

Generally I prefer mining stocks and silver because Australian law provides for the compulsory acquisition of gold if they deem it necessary, and they do track it all. As for trading gold ETF's are convenient... right now it's hard to see that the gold stocks become much better value and everyone is calling a crash so IMO it will not happen. So while I think stocks struggle I also think that the market will re-balance in favour of the tangibles. Remember when the S&P was tangible dominated and not a tech index? Survivor bias...I think that the headline number will suck on the S&P while the index moves from the tech end more to the tangible end of the spectrum.

So yeah, I'm OK with playing gold stocks going into year end... not all in tomorrow but over the next two months, data dependent, that is where I will most probably be.
 
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