Tuesday, January 13, 2009

Dollar rally back on

I've been watching the dollar rally for a close back above the 200 week moving average. Yesterday we got that close. If the dollar can hold above this major support level into Friday's close then I think we may have seen the end to any rebound in commodities and probably stocks.

I've been saying in the daily reports that a move back above the 200 week moving average would constitute confirmation that the dollar rally is back in force and deflation is still in control.