Andrew Barber and I aren’t smart enough to ignore the simple reality of this chart, so we’ll keep flashing it to you when it makes lower-lows.
Today the US Dollar is down another full -1.3% (yes, for the said world reserve currency that’s a big one-day move!). The buck is making another run at breaking down through the critical level of $78.11 support. Since March, the USD dollar has lost over 12% of its value and the US stock market (priced in Dollars) has reflated to the tune of +48%! As the US Dollar makes new YTD lows, the US stock market is testing new YTD highs.
As Bernanke stares in the rear-view and his stacks of books about the 1930’s, everyone who is looking forward is starting to understand the compromise of America’s conflicts. If America’s financial system is based on an outlook of a man who missed both the crash and the recovery, why trust her currency right here and now?
Below we have refreshed and outlined our quantitative view of the US Dollar. On all three durations (TRADE, TREND, and TAIL), there is one conclusion – the Buck Is Burning. I don’t know what else to say, so I’ll stop writing here.
Keith R. McCullough
Chief Executive Officer