Tuesday, July 28, 2009

Notes on the Dollar… Money for Nothing, Get Your Chicks for Free!

Just want to point out that we have arrived at a pretty important point in the Dollar Index. In the chart below you will see a couple of potential triangles, but also a down channel and an important line, that if crossed may mean further deterioration in the dollar. Yesterday we hit that line and the dollar is bouncing today:

Also note on the chart below that the SPX is a near mirror image of the Dollar as seen in the 2.5 year daily chart. While the SPX broke out above trendline, the Dollar has NOT. That is a divergence, we will see which one is going to win:

Hey, we’re about to find out what’s truly important to the powers that be. Of course they talk up a strong dollar while simultaneously killing it with their actions – you know, little things like auctioning off $235 billion in new DEBT just this week! To them money is for nothing, they get their chicks for free!

Dire Straits – Money for Nothing: