Thursday, February 18, 2010


The Fed has printed literally trillions of dollars in an ill fated attempt to jump start the economy. Folks it's not fundamentally possible to have a strong dollar with that kind supply.

If one looks at a chart it does appear that the dollar is rallying. But is it really, or is the Euro just falling?

When measured against a stable source of value the dollar is actually losing value rapidly.

Just since the Feb. 5th bottom oil has rallied 12%, gold 8% and copper 17% despite the illusionary strength in the dollar.

Far from being strong, the dollar just happens to be a slightly better choice than the Euro right now.

Consider that the sentiment on the dollar has now reached extreme bullish levels and the Euro bearish extremes. Plus the dollar is moving deep into the intermediate cycle and at jeopardy of an intermediate trend change at any time.

Once the dollar cycle tops commodities are set up to explode higher.