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Nothing is going to stop the U.S. dollar!

Big Al
February 26, 2015

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Discussion
46 Comments
    Feb 26, 2015 26:43 AM

    Rick ; And the EURO will drop and drop ! BUY GOLD !

    Feb 26, 2015 26:59 AM

    CRJ is bumping into a little resistance at the 600 day EMA but looks very good.
    http://stockcharts.com/h-sc/ui?s=CRJ.TO&p=D&yr=0&mn=9&dy=0&id=p23220432399&a=390636292&listNum=1

      Feb 26, 2015 26:06 AM

      Yes, it does, Matthew. I expect it to move a little higher with the coming bump up in gold and then to settle back into April. At that point, I make my final additions to my position.

        Feb 26, 2015 26:11 AM

        Doc, I think a brave and nimble trader can capture a decent gain by getting in right here.
        (Not advice!)

        Feb 27, 2015 27:26 AM

        I concur Doc.

        LPG
        Feb 26, 2015 26:26 AM

        Sweet chart indeed Matthew.
        Best,
        LPG

          LPG
          Feb 26, 2015 26:04 AM

          Oh… and for disclosure, I am long the stock.
          Best to all,
          LPG

          Feb 27, 2015 27:25 AM

          I am in the money on Claude and feel it has always been a solid company, but since their turnaround in operations and cost control last year, this has been very solid. Thanks for the chart Matthew!

      Feb 26, 2015 26:45 PM

      Matthew:

      I for one have no idea what you are talking about. Are you writing in English or Canadian?

        Feb 26, 2015 26:54 PM

        It’s all Greek Dai. You are not mean to understand it. He has recently developed the skills of a seasoned politician where he promotes without ever making a commitment or a specific call. The deception is he does it by asking a question as if to imply he knows the answer. Miraculously (after the fact and always with 20/20 hindsight) he can refer us back to his vague promotions and point to his success’s in calling upward moves in stocks!

        The whole charade is so childish I could puke. But I won’t…… I just bought this computer and its still new!

          Feb 26, 2015 26:15 PM

          Hmmm… Doc and LPG understand and agree but Birdman doesn’t and calls it a charade… I can live with that! 🙂 🙂 🙂

            Feb 26, 2015 26:32 PM

            They don’t have new laptops like me. So it doesn’t count.

        Feb 26, 2015 26:16 PM

        Dai Uy, no English or Canadian for me.

          Feb 26, 2015 26:33 PM

          Matthew,
          dont engage Birdman – it is not worth it…..not at alll.

            Feb 26, 2015 26:55 PM

            You’re absolutely right Marc, but he’s like a relentless mosquito. Obnoxious.

    Feb 26, 2015 26:04 AM

    Rick:
    “The $ is in a bull trend and nothing is going to stop it.” There surly must be a level where this will end……isn’t there? If not, why not buy $$ based assets and hit the beach for the rest of one’s days.

    Feb 26, 2015 26:27 AM

    Rick,

    good point about the overnight markets. They sure are painting a picture. I have heavy bags lol. This is not the bounce we are expecting. It comes in next week imo.

    I can see dollar rallying with gold and equities selling off!
    I can see equities rallying and gold/dollar selling off!
    But i can’t see dollar/equities rallying together as that would mean im packing up and moving to the good old usa.

    BDC
    Feb 26, 2015 26:37 AM

    The dollar is at levels not seen in 11 years.
    Short term target now 95.93 (from 95.67).

    Feb 26, 2015 26:55 AM

    Hi guys,
    Rick, the DXY hasn’t been above 93 for a number of years, more than six.
    The external peak around 100 might be the one around 2003, which is more than a decade ago. Then there is a shoulder with some peaks around 100-105 from around 1998 before the dollar peaked at 121 in 2001.
    So a move above 100 would be about a 12-year high and the dollar must already be at a 10 or 11 year high. So this is already quite a magnificent dollar bull.

    Feb 26, 2015 26:39 PM

    So bored today I could pick hairs off my head just to pass the time.

    bb
    Feb 26, 2015 26:50 PM

    Trader Dan just did an article showing gold tracks the ten year, maybe there is a clue in there.
    I really have no idea (probly obvious) I don’t grasp treasuries or bonds really.

      Feb 26, 2015 26:26 PM

      Bob,
      Saw that. Hard for me to believe that only one item could be used as a predictor, but it makes some sense – gold provides no yield so perhaps it should indeed fall when treasury yields rise, and rise when treasury yields fall. That chart trader Dan showed does look like a good correlation.

        Feb 26, 2015 26:26 PM

        Sorry, meant to address Bob, not Bob.

          Feb 26, 2015 26:29 PM

          That editor did it again – I hate it when software thinks it is smarter than I am and “corrects” my supposed mistakes. Meant Bb, not Bob. Last attempt!

      Feb 26, 2015 26:01 PM

      Thanks bb, good catch. I always enjoy a good read from Dan where he wallops the gold seers, pumpers and pushers with a heavy verbal stick across their backsides. Today was especially enjoyable though. He greeted them with a 2X4!

      Dan writes:

      “Amazing isn’t it? Gold continues to track the movements in the Ten Year Treasury note futures remarkably closely. When it goes up ( interest rates move lower) gold moves up with it. When it goes down (interest rates rise) gold goes down with it.

      Notice, there is no “gold price manipulation” crap. No wild conspiracy theories; no “evil bullion bank cartel actively slamming the gold price lower”. No, it is a simple matter of what the market thinks about where interest rates are going and when.

      This is why all the wild claims about gold going to the moon, doubling in value, soaring to $2000, blah, blah and more blah are the fruit of empty-headed drivellers who cannot keep their tongues from parading through the earth and defiling us all with their baseless and meritless predictions”.
      ——————————–

      Nice Dan….Thanks!

      I really don’t know why this topic does not get more attention. I tried to bring it up in my own fashion a few days ago in a discussion with Matthew by posting charts of the very long term 10 year versus a 15 year gold chart but got no traction whatsoever. I mean there has been zero response on this site to observations about the gold / rate link. Here is what I said:

      “Exhibit A: The Bond Bubble as seen through the 10 Year rate — 1790 to 2012
      http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/04/20130423_10Y.jpg

      Please keep this posted on your wall right beside the 15 year gold chart. There is a relationship between them.”

      Whatever! …….Matthew knows better and it is not just an oversight that he does not answer when that topic is brought up. All the better to keep his merry little band of groupies misinformed and eating poppycock charts from his hand.

      Until a few of them around here wake up they will keep losing money. I would really encourage any of them that read this to go and see Dan’s recent article for an eye opener on gold from a professional perspective.

    Feb 26, 2015 26:06 PM

    Rick, I happen to agree with you. Deflationary forces will continue to rule.

    I know it goes against everything that we think of as being normal in the world and how currencies should react.

    The dollar having this incredible strength even in the face of trillions of unpayable debt obligations just short circuits most peoples wiring. Even I have been stunned at its strength, but I came to grips along time ago that the eclectic power of the world reserve currency status simply trumps the debt construct for a while longer.

    I think it’s going to blow everyone’s mind, including myself, that the dollar may indeed retain its king of currency status for many years to come.

    The counter intuitiveness of the dollar remaining strong in light of the USA being an effectively insolvent nation many times over just confounds the our hard-wired brains. The key to this dichotomy lasting longer than anyone believes is that the global insolvency of every other nation of significance feeds the commerce circulatory system and generates a feedback loop by necessity with in the controlled system.

    There just simply is nothing of workable scale that can replace this current flawed architecture.

    It all leads back to the dollar with its trillions of liquidity units in every cell nuclei of the global economy. The dollar is the key to holding the unfair and distorted system together. That’s why they will keep it going at all costs; it simply cannot be allowed to fail at this stage of the crisis.

    At some point in the future an inflection event will overpower the system and destroy it, or deeply damage it in its current form, but that event is not imminent. I suspect that that event horizon waterloo moment may stun many by it reaching as far out into the future as a decade or more.

    Yes there will be strength and weakness along the way, but the writing is on the wall. The dollar system must be kept operational at all cost, and I suspect it will be.

    bb
    Feb 26, 2015 26:24 PM

    So Vortex, I guess you are not convinced of the “Event”, Shemitah or Big Bang arguments.
    They all seem to be the same as far as I can tell.

      Feb 26, 2015 26:09 PM

      BB,

      In its most simple and grassroots dialectic………..the dollar is not going away anytime soon like so many over-emotional delusional end of the world goofballs that are trying to sell you something that they hope you can’t figure out for yourself with just a little time and effort.

      Life is all about cycles and change and we all have learned more about these cycles and their implications as vast reservoirs of knowledge has crept into the open over time.

      There have always been all kinds of ups and downs in the world, and some may even be classified as crisis events of extreme concern and warrant our attention. None of this is new, not even catastrophic stock and bond market events that have always been apart of the human legacy of finance.

      But to sit around and tremble and cower in the corner of a room, day in and day out at the universal possibility of events that could happen, that are out of my control is not going to be one of them.

      Instead of enriching some mysterious nobody because he wrote a goofy book about cyclical events called “Shemitah” is not my idea of time or limited money well spent.

      I would rather get up off of the ground and dust myself off, stand on my own two legs and navigate the world as best I can and admit my limitation as a man and a human and try to live a life that is remotely correlated as close to normal as possible.

      Hyperbole and fear-porn that is everywhere you look and sponsored by the State has grown tiresome. That one remaining small piece of private property I have left is my brain, and I have no intention of allowing a planned dialectic of fear to rent free space in it any longer.

      I hope that adds some clarity.

      V

        bb
        Feb 26, 2015 26:25 PM

        Couldn’t agree more V.
        I still like to watch tho, maybe has something to do with my tinfoil hat.

          Feb 26, 2015 26:09 PM

          BB,

          Yes my friend of course there will be change and disruptive events.

          But the world ending as a result of a seven year cycle event is not one of them!

          Life will always find a way to survive and sustain, it always has and always will.

        Feb 26, 2015 26:09 PM

        Fantastic post Vortex! That was just great. I thought the whole Shemitah thing was fascinating actually but agree with you on so many of your points I won’t even comment on them individually.

          Feb 27, 2015 27:16 AM

          Thanks Bird, I appreciate the kind remarks and it’s always nice to bounce things off of other respected and knowledgeable folks.

          You know as crazy as it sounds, I actually wasn’t demeaning Mr. Cahn for writing a book about the “Shemitah” cycles because he has every right to do so. His calling is to write books and teach the gospel so good for him. The market place will decide if his theory has value or not.

          BB asked the question and I needed to get that off of my chest. I just in general have grown tired, weary and maybe even repulsed by the never ending need to sell targeted mental psychobabble (no disrespect intended) to a gullible public that is incapable of understanding the nuances of this type of literature. It’s simply an off shoot of a KWN info-commercial in book form that’s centered on a constant state of emotion, flux, fear and apprehension.

          To be honest with you I’m much more intrigued and interested as to what compelled Mr. Cahn who is a Hebrew (Jew), to become a Christian Minister. It really doesn’t matter I just find it interesting.

          Bird at the end of the day I too become frustrated with the naïve thought processes of people and it’s not because I think I’m smart, I’m not. That’s why it disturbs me. I just shake my head dismay and say to myself………come on people “seriously”.

          At some point in a person’s life you just have to get the hell up out of bed in the morning and just go live your life.

          V

    bb
    Feb 26, 2015 26:29 PM

    Personally, Ive seen graphs of a lot of markets around the world, they look to be going parabolic, anything going parabolic seems to crash, thing is they could all crash at the same time, first time the world will ever experience anything like it.
    Could ruffle a few feathers.

    I wonder if that’s what these doomsayers are foretelling.

    bb
    Feb 26, 2015 26:34 PM

    Armstrong gives a date, 2015.75? Might be an idea to short a market or two around there.
    I read an article saying this is the greatest wealth making opportunity since forever.
    Could be right I guess.
    If it does happen, seems reasonable the goldstocks will be sold off too.
    Especially with physical being preferred by investers now over paper.