Dollar Post
I don't come here much any more but I wanted to talk briefly about an event that I mentioned to you last year. Months ago in fact about the dollar rally. It has gone as far as 95.64 from the low of 88.00. I told you to watch for this. In fact I told you that the risk was not to the downside but to the upside. It still may not be done. If it cleanly breaks 96.75 and heads to 98, well look out. It could very well do that.
However I don't think that this is where it is headed. I think it will plateau somewhere in this area.
Why?
That is what the central bank wants. It does not wish it to be too high or too low and consequently you should see this sideways motion for quite some time. Now is no time to be loading up on longs. Now is the time to lighten your position if you took the position. Take 50% off and see what happens. It will take a few months to turn but turn it may do. Then it will head back to the 88 area or slightly lower. Like the rise up it will take time. Measured in months.
So that is my take on the Dollar. It is also why Gold is lavashing at its intra month lows. I'll not say that I told you so but once again as I have done many times I did. To anyone who would listen to the posts.
I will repeat what I have said for years now. If you cannot read the inner workings of central banks at the moment then you are doomed to repeat the same mistakes most other fund managers have been making for the past ten years.
There will be no crashes either so get that out of your head.
Anyway I hope that you are enjoying the summer and I wish you well. Oh, be careful of oil up here too. It is at the top of its range. Don't listen to the pundits. Cheers!
However I don't think that this is where it is headed. I think it will plateau somewhere in this area.
Why?
That is what the central bank wants. It does not wish it to be too high or too low and consequently you should see this sideways motion for quite some time. Now is no time to be loading up on longs. Now is the time to lighten your position if you took the position. Take 50% off and see what happens. It will take a few months to turn but turn it may do. Then it will head back to the 88 area or slightly lower. Like the rise up it will take time. Measured in months.
So that is my take on the Dollar. It is also why Gold is lavashing at its intra month lows. I'll not say that I told you so but once again as I have done many times I did. To anyone who would listen to the posts.
I will repeat what I have said for years now. If you cannot read the inner workings of central banks at the moment then you are doomed to repeat the same mistakes most other fund managers have been making for the past ten years.
There will be no crashes either so get that out of your head.
Anyway I hope that you are enjoying the summer and I wish you well. Oh, be careful of oil up here too. It is at the top of its range. Don't listen to the pundits. Cheers!
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