The Dollar: I Don’t Try to Divine Much Meaning From the Squiggly Wigglies
February 4th, 2010Short to medium outlook dollar bears and gold bulls: Stay the course as long as the downtrending channel on the USDX remains intact. Keep in mind, however, that a move up and out of the downtrending channel on the USDX above could mean substantial pain in the weeks and months ahead for dollar bears and gold bulls.
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I’m in the process of accumulating U.S. Dollars to balance out my positions in anticipation of a dollar rally.
J writes re: The U.S. Dollar:
Kevin,
You called the dollar move. I didn’t believe it then. I don’t believe it now even as it’s going up and up. But why? How? What is driving this?
I wrote back:
J,
I don’t try to divine much meaning from the squiggly wigglies, except up or down. I’m not an economist, witch doctor or someone who pretends to know much about this stuff, in terms of the alleged fundamentals. If we were going by fundamentals, knowable to relatively informed people like you and me, this horror show probably should have collapsed decades ago. That’s why I trade with nothing but the woowoo. Think of correct calls as good luck, chance, calling heads and seeing the bust of Washington after the toss (or, in my case, the f*&^%$# Queen of England.) When it comes to computer generated numbers that update in real time, I gave up on asking ‘why’ a long time ago.
Kevin
More: Gold: Down $46, Quasi Shooting Star for the Week
