Legacy Funds

Liquid – Transparent – Alt Investment Strategies

Let’s analyze the dollar on a weekly chart…

Not only commodities, but most all asset classes have been trading inverse to the $USD. The dollar holds the key as to when the correction will begin. It has been holding $78 lately. There is a small likelihood that it will correct to $76, corresponding with the market rallying and SPY filling its gap. Again the charts can do this analysis much more justice than any words.

usd

Either the dollar is going to break up through the downtrend line, hence a rally for the $ and a correction for the market, or the $ is going to break support at $78 and head down to $76 area. That would correspond with a higher push in the markets and commodities. The important thing here is to watch the move in the $ over the next week or so.

You can also watch UUP , which is looking good on a daily chart today if it can get through the 50 dma slightly above:

uup

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September 1, 2009 - Posted by | Legacy Funds | , , ,

3 Comments »

  1. wow….spot on with that analysis. As at 22/09, its hit 76 and is hanging on for dear life.

    Comment by Justin | September 22, 2009 | Reply

    • Thanks — $76 is strong support. It may or may not hold — but the $ is going to set the next market/commodities trend whether that is down if support holds or up for the market if the $ fails. It is going to be a big move either way — but the $ has to decisively break support or hold. It is that simple.

      Comment by Suzanne Hamilton | September 22, 2009 | Reply

      • Agreed. What are your thoughts as to whether it will break or will it rise ?

        Comment by Justin | September 25, 2009


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