Here is the weekly bar chart of the US Dollar Index which I showed you in this post a couple of days ago.
Much to my surprise the New York Times this morning published an unequivocally bearish editorial on the dollar. This editorial is similiar to the one they published in early April 2005 and upon which I commented in this post.
Today the Times tells us:
"Investors remain largely focused on economic weakness in the United States and gathering strength in Europe - which portend a weaker dollar, no matter what anyone says."
"A weaker currency is inevitable for a country as indebted as the United States is."
"The great unknowables are the timeing and steepness of a sustained dollar decline."
The New York Times is an exquisitely bad market timer. This editorial reinforces my conviction that the dollar index will hit 100 before it hits 80.
4 comments:
Thank you for your work
Interesting to compare news to market action, most of the time people see black where no black exist!
Bye and thank you for the good work!
Great job! Thanks
I agree that you can use technical analysis to predict short term swings in the market, but in fundamental terms, the dollar MUST go down. If the dollar were to increase in value, it would mean the federal government's long term obligations would increase, and there is no wealth for them to pay it off. They must enact (hyper)inflation to default on the SS and MEDICARE debt.
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