Tuesday, September 6, 2011

US Dollar Update

Click on Chart to Enlarge

Today's large gap up after recently breaking out a wedge, and a possible longer term pattern completion all suggests that we are likely to see continued pressure on commodities and that the markets may be shifting to a deflationary theme in coming months.

The advance should be very sharp (sharper than the May advance) in the dollar index if a bottom is, in fact, in place.

Several markets, I believe are near very significant turns. I will update on bonds ASAP, but the suggestion is that US 30 year bonds should be topping, I think this week. Cash is the place to be right now.



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