1/22/2024 – Another positive day with the Dow Jones up 138 points (+0.36%) and the Nasdaq up 49 points (+0.32%)
No changes to our prior or weekly updates. Longer-term, the market is playing out exactly as it should or as per our overall forecast.
The only additional data point we have has to do with our short-term Intraday calculations. We have a short-term point of force arriving on XXXX (+/- 1 trading day). This point might cause one more pullback before we make that final run higher towards the targets outlined below. We will identify this point with more precision as we get closer. Click Here to see the rest………
Most investors have presumed the US Dollar will decline going forward. Its a sure bet if you consider those FED Rate cuts everyone is talking about. Case and point……
Dollar Longs Are Steadily Throwing The Towel In
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- Speculators are reducing the number of currencies they are short versus the dollar, as well as increasing the size of their bets against it. The real yield curve shows that the dollar should trend lower over the coming months. The dollar may have had a good start to the year, with the DXY up almost 2%, but speculators appear to have little faith this strength will continue.
Our mathematical and timing work for DXY is somewhat clear. The US Dollar strength will increase throughout the year. And YES, it will eventually collapse, but not quite yet.
Here is why ………. Fed cuts or not…..
Take a look at the DXY in 2008 or any other major pullback in the market. Typically, the US Dollar becomes stronger as money flows out of the market looking for safety. Considering today’s massive imbalances, it would be prudent to assume the inflows into the DXY will be significant when the next bear market hits – something that we expect to happen very soon by the way.
So, in typical market’s fashion the DXY might do something that no one is expecting it to do. Run up to an all time high. Please review our US Dollar forecast in our membership section for more information and exact Time/Price targets. Click Here