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The US Dollar is Breaking Out Against Every Major Currency
Stocks are living in a fantasy world.
The S&P 500 continues to trade in a range. The bigger picture shows the index forming a sloppyg Head and Shoulders pattern. If we take out 2,000 we’re going to 1,800 in little to no time.
What will trigger this is difficult to say. The most likely candidate is the US Dollar. Many analysts talk about the US Dollar being in a bull market… but they’re failing to see the big picture component here.
The US Dollar is breaking out against EVERY major world currency.
This is not some blip on the financial radar. The US Dollar has been trading sideways for several years. But in the last 8 months, that all changed as the US Dollar broke out against the Yen, the Euro, the Australian Dollar… literally everything.
This is a seismic shift in the global financial landscape. And it is just the beginning. Globally investors/ corporates have borrowed over $9 trillion worth of Dollars and used this money to fund other projects.
To put that number into perspective, it is larger than the economies of Japan and Germany COMBINED.
ALL of these investments are now beginning to blow up. ALL of them. It is not coincidental that when the US Dollar began to move aggressively, OIL, COPPER, EMERGING MARKETS, and the like all IMPLODED.
The one hold out has been US stocks… but this won’t last much longer. Any company that relies on a cheap Dollar for exports will get crushed. Indeed, this is already happening: over 87% of companies have lowered guidance for 2015.
The Fed is no longer engaging in QE. Profits will now be the largest drivers of stocks. And profits are collapsing.
The stage is set for a market collapse.
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Best Regards
Phoenix Capital Research
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Uh oh...Graham is now warning us about a sloppyg Head and Shoulders! Those are especially dangerous!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Seriously, how tough it must be to be in business where you continually make scary calls that don't come true?
Guess what Graham? ONE DAY you MIGHT be right! That does not make you someone that anyone should trust one penny to. You're a shyster and a crank seeing that you made call after call warning about impending doom.
That's not professional and that is not even intelligent. It is plain hokey pokey nonsense!
BTW, Grahams posting are a serious reason I do not visit this site muc anymore...maybe once a week if I am bored and want to hear hysterical rantings of overeducated young persons.
the sky is falling! the sky is falling!
The Fed may not be using fresh money to buy new treasuries but what are they doing with all the profits from the treasuries they already bought? So maybe they are buying treasuries with the profits... Stealth QE?
USD is long overdue for a move higher - you could see it coming in the summer
http://bullandbearmash.com/chart/dollar-weekly-1-demand-usd/
The greatest offset to the USD is the Euro and Europe has been in a miserable mess for several years.
The safe haven, as unpopular as this sounds, is the USD.
Peddle your chunk laden spew elsewhere.
TROLL
Parabolic since last July not a big enough clue for you?
You make some decent points, but you're just like Casey Research - "and now for a limited time only" "subscribe today" "pssst, ey you, k'mere"....
these phoenix ads are like a broken record...
If I had listened to them two years ago I'd have sold everything. After all the market was going to crash the next day.
Do people really pay this guy for investment advice?
"If we take out 2,000 we’re going to 1,800 in little to no time."
I guess that's why we won't dip below 2k. What's going to happen when it breaks above 2090?
"The Fed is no longer engaging in QE. Profits will now be the largest drivers of stocks."
Too stupid to respond to
I am assuming he made a typo and actually means Profits = Citadel (aka FED), BOJ, and the ECB. Let me correct his error..
"The Fed is no longer engaging in QE. Citadel, BOJ, and the ECB will now be the largest drivers of stocks."
The dollar has been breaking out since 2011 bottom in the 74 range. It will continue higher because what it is priced in suck more (perception wise).
It will take more of all currencies to buy gold over time.
This guy is a Fucking moron
And your basis for saying this is WHAT EXACTLY?
How many Ponzi schemes have you invested in? What is your position on Ponzi schemes? Let me guess, they are wonderful as long as you get in on the bottom floor?
I cannot flaw the logic in the above premise but the insinuation is, if you front run your prognostication too far, you are wrong.
If Phoenix Capital said social security and medicare was a Ponzi scheme and it was destined to collapse, would you criticize them for that as well? In the end, guess who is going to look like a bumpkin?
Thank you, Phoenix Capital's mom.
So CEO bonuses are working!
I thnk this is the same article I read here 3 years ago when I first found this site....of course the date on it has changed. After this many years, you are bound to be rght soon
Not necessarily. George Harrison himself said the Beatles' popularity would fade in 6 months. That was in the 1960s.