Dollar Is Ready For Multi-Month Rally

Dollar Is Ready For Multi-Month Rally

The excerpts below extracted from Market Updates sent out to subscribers clearly illustrates that the Dollar is ready for a Multi-Month Rally………… Potentially turning into a multi-year rally.

One thing every single person needs to remember is that every single bull market has experienced several strong corrections and at least one incredibly painful correction; there has never been an exception to this rule and there will never be.  Commodities are slowly falling down one by one, it is just a matter of time before oil and precious metals are hit.  Despite the dollar trading to new lows, there are still many signals that continue to validate that the dollar is going to mount a multi-month rally. The time frames have moved but the pattern has not turned bearish. Lastly, everyone is harping about the dollar trading to new lows; in reality, its July 2008 low is still holding, but many commodities have traded to new all-time highs.   This development alone is one of the largest possible positive divergence signals any market can or could ever generate.   Market update May 4, 2011

The weekly close above 74.50 in record time was a strong positive development and validates the outlook that the dollar has put in a bottom.  Last week we stated that the dollar would need to close above 76.40 on a weekly basis to generate the next confirmation. This is still valid, but the strongest confirmation would be for it to trade above 77.50 for 3 days in a row.  The current pull back the dollar is experiencing is a normal reaction given the strength of the initial move.  However, nothing has changed in Europe and one could argue that the situation actually looks worse now than it did last year. Market Update May 24, 2011

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You might find these articles to be of interest:

Euro has nowhere to go but down (Sept)

It’s Not A Good Time To Buy Gold (Aug 30)

Interesting Charts (July 26)

Dangerous Signals (June 21)Dollar Is Ready For Multi-Month Rally