Dollar Rally: Primed for a Multi-Month Surge

Dollar Rally: Primed for a Multi-Month Surge

Dollar Ascendance: Anticipating a Multi-Month Surge

Updated Dec 2022

The following excerpts, taken from our Market Updates sent to subscribers, provide compelling evidence that the Dollar is on the cusp of a Multi-Month Rally… with the potential to evolve into a multi-year surge.

Navigating Bull Markets: Expect Corrections and Prepare for a Dollar Rally

Every single person needs to remember 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 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 validate that the dollar will 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 most significant possible positive divergence signals any market can or could ever generate.   Market update May 4, 2011

Dollar Reversal: Strong Weekly Close Signals Potential Bottom Formation

The weekly close above 74.50 in record time was an enormously positive development and validated the outlook 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 pullback 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

Conclusion:

In conclusion, the market updates from May 4, 2011, and May 24, 2011, provide compelling evidence suggesting that the dollar is poised for a significant rally. While commodities are experiencing a gradual decline, indications validate the potential for a multi-month rally in the dollar, possibly extending into a multi-year surge.

Despite the dollar trading at new lows, the market signals and positive divergence from commodities reaching all-time highs suggest a potential bottom formation for the dollar. The recent weekly solid close above 74.50 further reinforces this outlook. Although a pullback is currently observed, it is considered a normal reaction given the initial move’s strength. It is important to note that the situation in Europe has not improved and may have worsened, potentially providing additional support for the dollar rally.

FAQ:

Q: Are corrections a regular part of bull markets?
A: Every bull market experiences several strong corrections and at least one painful correction. This pattern has been consistent throughout history.

Q: What signals validate the potential for a dollar rally?
A: Despite the dollar trading at new lows, multiple signals suggest a forthcoming multi-month rally, including positive divergence from commodities reaching all-time highs.

Q: What confirmation is needed to strengthen the view of a bottom formation for the dollar?
A: While closing above 76.40 on a weekly basis is relevant, the most potent confirmation would be for the dollar to trade above 77.50 for three consecutive days.

Q: Why is the current pullback considered a normal reaction?
A: Given the initial move’s strength, a pullback is a natural and expected response in the market. It does not negate the potential bottom formation for the dollar.

Q: Has the situation in Europe changed since last year?
A: No, the market update suggests that the situation in Europe may have worsened compared to the previous year, which could further support the dollar rally.

Q: What should be monitored to track the progress of the dollar?
A: Key levels, such as the weekly closes and trading above certain thresholds, along with any developments in Europe, should be closely monitored to assess the dollar’s future trajectory.

You might find these articles to be of interest

China problems Politics Economy and Corruption

China’s Problems Unveiled: A Comprehensive Analysis of Challenges

Tackling the Puzzle: Understanding and Addressing China's Problems Nov 27, 2023 The landscape of Chinese politics has undergone significant changes ...
defense industry

Turkey, Russian tensions, good for defense industry

Updated Nov, 2023 In the ever-evolving landscape of geopolitical tensions, the strained relations between Turkey and Russia have emerged as ...
Alexa Speaker

Dethroning the Reign: Amazon Echo Dot Evolution

Editor: Philip Ragner | Tactical Investor Dethroned: Amazon Echo Dot - its Changing Status Once upon a time, the Amazon Echo ...
Uranium Spot Price: The Stealth Uranium Bull Market

Uranium Spot Price: The Stealth Uranium Bull Market

Some people drink deeply from the fountain of knowledge. Others just gargle. Grant M. Bright, British-born American Engineer Uranium Spot ...
Goldman Sachs: Navigating Its Sordid Past and Complex History

Unraveling Goldman Sachs History: A Closer Look at Its Sordid Past

Goldman Sachs History: Sordid and Controversial Blend Nov 19, 2023 Introduction: Goldman Sachs, a renowned name in finance, has left ...
South China sea

US warns China; Unemployed people in Europe

Updated Nov, 2023 US Warns China Over South China Sea Aerial Dispute The South China Sea, a region of geopolitical ...
Bitcoin Bubble Phase or Good Investment

Bitcoin Bubble: Surfing the Wave or Assessing Investment Potential

Decoding the Bitcoin Bubble: Beyond the Hype Updated Nov 2023 The current trend in cryptocurrencies, analyzed through sentiment, is drawing ...
Is Europe promoting rape and sexual violence?

Europe Promoting Rape Culture: Challenging Times

Updated Nov, 2023 Europe Promoting Rape Culture: In the wake of the shocking New Year's Eve incidents in Cologne, where ...

Online addict: Unveiling the Underlying Patterns

The Enigma of an Online Addiction: Navigating the Abyss Updated on Nov 15 2023 In a world where screens dominate ...
rules of mass Psychology and Investing

Latest Stock Market News: Making Money With Mass Psychology

Latest Stock Market News: Unraveling Mass Psychology  Insights Updated Nov 15 2023 When discussing mass psychology blended with the topic ...
Student loan debt crisis

One chart clearly illustrates coming student loan debt crisis

Updated Nov 15, 2023 Unravelling the student loan debt crisis: Navigating the Tides of Educational Finance. In the rhythmic pulse ...
Executive Compensation: Navigating Integrity Over Greed

Executive Compensation Driving Share Buybacks

Editor: Vladimir Bajic | Tactical Investor Executive Compensation & Greed: A Deep Dive into the Mechanics Updated Nov 13, 2023 ...
Muslim Burqas being Banned in Africa; seems they are followign Trumps advice

African States Target Muslim Burqas

African States Target Muslim Burqas Updated Nov 11, 2023 In the ever-changing landscape of global affairs, African nations are making ...
Yellow Journalism Examples

Unmasking Deceit: Examples of Yellow Journalism

Editor: Vladimir Bajic | Tactical Investor  Deceptive Tactics:  Examples of Yellow Journalism Updated Nov 13, 2023 In the modern era, ...
Renting vs Owning: The shifting landscape

Renting vs Owning: High Rental Costs Are Killing Americans

Renting vs Owning: The Evolving Landscape Updated Nov 2023 Amidst the backdrop of increasing living costs globally, the deliberation between ...

r Is Ready For Multi-Month Rally