Watch that Dollar!
I posted this note about a US Dollar upside break last week, and can now say that this appears to be the real deal. It probably means that allocations should be adjusted accordingly. I would be surprised to see equities or commodities (including gold) rise if/as this US Dollar rally picks up steam.
It has now broken above the 50 and 200 day moving averages. And being as today’s a Friday, barring a late-day sell-off, this strength will be passed onto the more meaningful weekly chart.
Watch out because it is exactly what happened in 2008 (a delayed, but very meaningful Dollar rally). I will try to get my research together over the weekend and post something on Seeking Alpha by next week…