Loading ...Correction In Dollar Bull Market? Commodity Bounce?
Posted by Victor Adair via Drew Zimmeran @ PI Financial
Monday, 10 November 2014 10:05
We’ve traded currencies for 40 years and believe that they “trend” more than other markets (who remembers leads and lags?)…that the trends go WAY further than seems to make any sense…and then reverse in “Vee” shaped turns. This tendency for currencies to go WAY further than seems to make any sense (plus our long-term bullish Dollar view) is the reason we do NOT recommend outright short Dollar positions. BUT…we note the HUGE ($45B) long dollar position in the futures market and the “beating” dollar-priced commodities have taken…and we “sense” a correction. Adding to our “sense” of a correction is a weekend report (Nov 9) from our long-time friend and excellent technical analyst, Ross Clark, warning of an “overextended” dollar…and a likely bounce in Gold.