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The Dollar continues to create a series of higher lows….Have mentioned this pattern of late (see post here). As mentioned on prior occasions, the bullish pattern the Dollar was making will impact the a majority of assets, via lower prices.
Hard Hat zone? Has been for weeks now! (See look alike post) If the Dollar breaks the 23% Fib level, Hard hats for protection will be needed in a wide variety of assets…doubt diversification will do much good!
Cash? Govt bonds? I believe in 2008 interest rates were higher than they are now. So better than stocks, maybe even with dividends. Now interest rates are hiding somewhere but not in cash and not much in bonds. Another item, Fedex reported a good quarter and a good outlook for the rest of the year. Fedex an indicator of the economy? Maybe a very stressful summer for investors?
Short Squeese fuel, all the Dollars stuffed into Commodities
priced in Dollars, is basically a Short position against the Dollar
Andrew… I have shared 3 different times my concerns via the “look alikes, dominoes and slipper slide” posts, suggesting that risk was as high as I have seen it in my 31 years….see post below.
https://www.kimblechartingsolutions.com/2011/05/look-alikes-dominos-and-slippery-slides/
Many things are walking, talking and acting like 2008! Where was a good place to preserve capital in 2008? Cash, govt bonds and long the U.S. Dollar….how are those tools looking right now? Metals didn’t provide a safe haven in 2008, especially Silver, so far they aren’t again!
Does anyone remember Crude at $140 and what happened when it started breaking down? Was it due to some news release or the reality of a global contraction??? I did the quiz on Monday about Brent, suggesting its decline will send a global message and I believe it is!!!
https://www.kimblechartingsolutions.com/2011/06/what-would-you-do-with-this-pattern-answer-brent-crude-oil-contract/
Grains, metals, oils and defensive issues are breaking support….am I talking about mid year 2008 or mid year 2011?
“… doubt diversification will do much good!”
Does that mean best thing to do is go to cash? Asking only because I regard cash as an asset class as well and in these times I’m deeply concerned about the sanity of keeping any significant amount of assets in USD-denominated cash.