"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


Thursday, April 21, 2011

US Dollar posts the lowest Weekly Close in 32 Months

Not much more needs to be said about the US Dollar than this headline. They managed to push it just barely above the support level ahead of the long holiday weekend but it certainly looks weak heading into next week. The problem is even though the "short Dollar" trade is crowded, there does not yet exist a fundamental reason to buy the Greenback.

That bodes poorly moving forward, oversold, crowded or extreme bearish sentiment notwithstanding.


  1. It sure feels like a dead cat bounce is coming. Looking forward to the metals wrap this week Dan. Thanks once again!

  2. My question is, and maybe this is the $64,000 one, at which low does it have to take out in order for (whoever bids it back up) to just say "F it!" and it drops out of existence?

    Can it dip below the all time low and still be technically "rescued?"

    Read this blog everyday. I appreciate your time and thoughts, Dan.

  3. ok that was a really funny closing sentence. We're doomed aren't we Dan.

  4. How do you chart uncharted territory? Can you do a story on that title? :-) Thanks Dan.

    The News UNIT

  5. News Unit - we have to make projections based on extending lines drawn off inflection points. I will try to get something off about this sometime this weekend.

  6. That would be a welcome article, Dan. I notice you've been using the pitchfork tool to predict resistance points for Silver recently. I'm sure there are other methods.


  7. The trade weighted broad US Dollar Index should fall through its 08 low last week, which could be the main trigger for gold and silver broke to their new highs. The Fed will release the updated data Monday afternoon. The chart below reflects how our trading partners see the value of USD.



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