According to most market participants, just a few short months ago, the US Dollar was supposed to crash. Leading to some sort of a inflationary spiral and subsequent stock market boom.

Yesterday and today, President Trump in no uncertain terms had said that he is concerned about advancing Greenback. More or less blaming the FED for the rally. We talked about it here. Trump Wants The FED To Juice The Stock Market, But No Juice Left

Fair enough, but according to our work Mr. Trump will be shocked by how far this Dollar rally/bounce will go. After all, it did bottom right where it was supposed to and the structure thus far looks anything but bearish.

This will also come as a shock to most Dollar bears, such as Peter Schiff, who are now in disbelief of what is happening to the currency. According to them, the US Dollar should be getting destroyed or inflated away into oblivion just about now. Yet, the opposite is true. Since April the Dollar has staged a rip your face off rally.

The Dollar missed our bottom calculations that was projecting a bottom at $88 by a few pennies and we went long at around $91. Just as was outlined here Why Peter Schiff Is Dead Wrong About Inflation & The USD

Once again, I believe quite a few people will be surprised by how far this dollar rally goes long-term. Yet, there is a much bigger reason to worry about today’s Dollar rally. The S&P earnings going forward.

Stocks Are at Risk of A SERIOUS Drop Unless the US Dollar Rolls Over Soon

The financial media are euphoric that stocks are up today. However, they’re all ignoring the fact that the issue that triggered the recent sell-off (the Fed’s colossal policy error regarding the $USD) has not been resolved.

Put another way, until the $USD rolls over, stocks are in serious danger. We need to get out of that red rectangle area ASAP and back down to the green rectangle.

That is to say, recent S&P earnings bounce from $88 in 2016 to just shy of $110 today (2014 level – what growth?) was largely driven by weaker dollar. Should this catalyst be taken away, well, the stock market will go from crazy valuations levels we see today to “are you fu*#ing kidding me” valuations levels literally overnight.

Our timing and mathematical work clears up all of the confusion associated with all of the above. If you would like to find out what happens next to the US Dollar and the stock market, please Click Here