1/26/2015 – A positive day with the Dow Jones up 6 points (+0.03%) and the Nasdaq up 14 points (+0.29%).
The stock market continues to trade within a tight trading range. That might change in a relatively short order. If you would like to find out which way the market will break and when, please Click Here.
In the meantime, the US Dollar continues to surge higher. Given the chart below, is it prudent to expect this trend to continue for the foreseeable future? Let’s explore.
As discussed in our weekly podcast (Saturday’s post), it is highly probable that the dollar is approaching a major turning point for the following reasons.
- The long-term chart above suggests that we are still in a major downtrend and now approaching a major resistance level.
- Everyone is long the “King Dollar”.
- For the dollar to truly bottom, a double bottom around 2011 levels is likely.
- International currency war were everyone is trying to debase their currency has started.
- The FED might postpone interest rate increases
- Upcoming recession and another QE is likely.
- Etc…..
In other words, there are many reasons for the US Dollar to come down now. As a result, it would be wise not to have a large long dollar position going forward. And if you do, it would pay to watch your position like a hawk.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. January 26th, 2015 InvestWithAlex.com
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