Last Friday I shared the chart below with Premium Members, reflecting that the Dollars rally had taken it up to a falling resistance line, which suggested we should see a Dollar decline and a rally in equities (see post here)


Below is an update to last Fridays chart…


The Dollar broke above the 23% Fib resistance level and now is testing the old resistance as support this afternoon!  The awesome John Mauldin has often been quoted as saying-“The Dollar is the worst currency in the world, except all the others!”  What the Dollar does here will bring out the best and worst in portfolio construction!

The quiz yesterday reflected an ETF that is the focus of the medias attention (see quiz here). I suspect what the Dollar does here will become the focus going forward.  Even though the markets have seen its share of volatility since the end of July, “brace yourself” for a ton more due to the dollar’s situation right now!



How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past