A couple of popular Wall Street phrases are….”Don’t fight the Fed and Let the trend be your friend.”
IF the goal is to see the Dollar fall in price and have other assets rally –Success….so far so good! The big test on this “Highway to Higher Asset Prices” is now at hand, a few days after the announced QE2 program.
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The Dollars decline has been very positive for the 500 index and Copper/Commodities. The positive price action reinforces the quotes from above per not fighting this Trend/Fed at this time!
The “Power of the Pattern” reflects that the Dollar is on support RIGHT NOW! If the Powers to be can break the back of the buck, cause the Dollar to break support, this rally should achieve much higher prices.
Keep stops in place that are comfortable to your personal risk levels, since many important assets are at the TOP of their ranges and the Pattern on the Dollar is fighting the potential game plan of the Fed!