Wednesday, December 22, 2010

12/22 3:15

Dollar index has formed a triangle after a 5 up from the overnight low of 80.62.  I would expect an upside breakout to a new rally high.
I've avoided crude as it is a prime beneficiary of fiat expansion.  Hedge funds love this market and generally work off of leverage.  That being said the rally from the May low has been a series of abc's with what looks like the final c in progress destined to take out the rally high of 91.175 basis Feb.
Crude has it's own forward sentiment gauge which is in declining mode but has been partially offset by QE2.

1 comment:

  1. Thanks, Steve.

    Looks like crude could be a decent short once this 5th wave completes. Possibly ride it all the way into early Feb.