US Dollar Index Surging!
Well, we did see that US dollar index surging! but what and interesting week. As we come into the last month of the year and normally wait for a santa rally, there is lots going on in this crazy world of ours.
When We told our members back in June that there could be a big rally in the dollar, we have to wonder after seeing alot of action this week and the dollar breakout on the chart that we could be getting close to seeing this occur. On Friday The dollar posted its biggest gain since February 1999 against the yen as a better-than-forecast non-farm payrolls report encouraged traders to boost bets on Federal Reserve interest rate increases.
one of my rules for investing is being the contrariain. What the? so just what is a contrarian, well instead of getting suckered in like the rest of the crowd, go against them. Yes! thats right! Every man and his dog has been bearish on the US dollar right and that can mean one thing, down! well yes I do agree, but normally when you have everyone and all the analysts out there saying down at some point there will be and opposite reaction and a violent one too. Are we seeing this happen with the dollar? Well i guess the short answer to that is YES. Even though longer term we are bearish on the dollar.
Technically on the charts since the US dollar has broken out it means that higher prices now are likely for the US dollar index and this will put some pressure on the US commodities and equities also. Time will tell to see how all this plays out.
