The Road Ahead

Below is a weekly chart of the U.S. Dollar Index. As I pointed out on Jan 2nd, watch the U.S. Dollar to creep its way back above the 200 MA. So what does this tells us? Well, I can only assume that there is still a LOT of uncertainly in the market, and the market will retest the lows back in Nov 08. The world is still in a state of deflation. The commodities will not run as long as the U.S. Dollar is trending above the 200 MA. If the dollar strengthens more from hereon, it will only cause more pain to our export companies. As a result, I expect team Obama will do whatever it can to trash the U.S. Dollar in the coming years.