Cory, I have to agree with Rick here on the subject of the US Dollar. When we look at the monthly chart what we see is a very large bowl formation that spans about 14 years from 2002 to the present.

And that bowl looks to me to be on the rise as we have already seen an obvious bottom in 2011. Keep in mind though that this pattern is gigantic and has many years to play out to its conclusion.

We should be looking at something like 4 to 5 more years to finally hit the 1.20 or 1.30 zone…..That’s not exactly what Rick is saying of course so I won’t put words in his mouth but my interpretation is that we are still headed with fair certainty into a global deflationary bust that won’t culminate until at least 2020 (four more years).

So we will be talking about the dollar and long bonds for a long time yet.
Anyway, check the chart for yourself. Gold as you recall formed a similar bowl formation before finally taking off to the upside. These kinds of patterns are fairly reliable.

USD on a Monthly Chart — Note the large bowl pattern that suggests a much higher dollar in the coming years.
http://finviz.com/futures_charts.ashx?t=DX&p=m1

Hello RICK…In your opinion do you think gold could ever drop back to $500 as Velma seems to think, up above on Doc’s thread.