The pattern shown is nutty, but not so nutty that it won’t work for getting long ‘mechanically’ if you choose, or even getting short at D=98.00. I’ve used it because the more obvious pattern occupying the last four weeks is a little too obvious to be ‘our little secret’. A run-up to 98 is going to create more problems for a bull market that is already years overdue for a devastating correction. It will make overseas profits earned by U.S. multinationals shrink, but it will also tighten the deflationary noose around everyone who owes dollars. This will come as a rude surprise, and ultimately a profound shock, to those who make financial decisions based on what they learn from CNBC, CNN, The Economist, Bloomberg, and the New York POS Times. Rick’s Picks readers might not be spared from the ravages of the coming Second Great Depression, but at least they will have seen it coming.
DXY – NYBOT Dollar Index (Last:96.16)
