Dear readers. Here’s an interesting, though very technical, article on the USD collapse and it’s implication for commodities as well as the panic based temporary USD climb since the collapse of -08. Some interesting observations… The key one being that the 200 day moving averages of both the US Dollar Index (USDX) and the Continuous Commodity Index (CCI) have now reached its daily trading level - this should mean that the trend will be reversed during the summer and later this autumn. However(!) another stock market panic could again temporarily give the USD fuel even though the Fed have increased the monetary base by (at least) 111% during the last year!
…So, this article is interesting, even though I don’t agree with everything… The author believes the US stock indices will continue climbing for the rest of this year… Maybe in nominal terms, not likely in real terms… We’ll see…
Dollar’s Commodity Impact
Adam Hamilton, May 22, 2009
http://www.zealllc.com/2009/usdxcci.htm
