FEB 15, 2018
Clive Maund: “This Looks Like an Excellent Point to Short the Dollar”
Clive Maund is back with another round of no-words-minced commentary, and as usual, he’s right on the money, summarizing in his own words the pernicious nature of the ‘everything bubble’ that has expanded to the brink of bursting.
The purpose of this update is to try to make sure that you remain aware that the dollar has broken down from a giant top area, and is probably headed much lower, a prospect which is not diminished by the modest countertrend rally of the past week or so. We can see this top area and the breakdown last month to advantage on the latest 4-year chart for the dollar index below.
Basically these people expect to “have their cake and eat it” and have gotten away with this up to now – rising bond market, rising stock market, rates low and stable, thanks to allowing uncontrolled expansion of debt and derivatives, but basically they are out of time, which is what the drop in bond markets and consequent plunge in the stock market is signaling.
The dollar’s modest post-breakdown rally to the underside of its Broadening Top is a typical post-breakdown occurrence and only increases downside risk by unwinding the earlier oversold condition. With its moving averages in severely bearish alignment, it looks set to drop away very soon, and the decline could become precipitous.
ORIGINAL SOURCE: Reminder that THE DOLLAR HAS BROKEN DOWN FROM A GIANT TOP & LOOKS SET TO HEAD LOWER AGAIN... by Clive Maund at Clive Maund on 2/11/18