Wednesday, October 8, 2014

US Dollar is Extreme


news.goldseek.com / By Gary Tanashian /
Using Tom McCellan’s article discussing a “blow off” move in the US dollar and its very bearish net short position by commercial traders as a starting point, I would like to talk about the USD and gold and how they each fit in to the global macro backdrop.  We could add silver into the mix as well because its failure in relation to gold (ref. the gold-silver ratio’s breakout last week) is the other horseman (joining Uncle Buck) that would indicate a changing macro.  Here’s the McClellan piece:
Commercials Betting on Big Dollar Downturn
First I would question the term “blow off” when talking about the USD.  Markets that have come off of long term basing patterns and broken above resistance with plenty of overhead resistance still to come have not blown off.  A blow off is Nasdaq 2000, Uranium 2007, Crude Oil 2008, Silver 2011, etc.
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