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Some assets can give investors a leading edge to larger term market moves in the near future and assist them in portfolio building! The Power of the Pattern shared it was time to get picky on these tools back in February (see post here) as Basic Materials/FCX/Copper were creating topping patterns.
This morning the U.S. Dollar is hitting two year highs and and IYM is attempting to break the bottom of its flag/pennant pattern.
Should Dollar strength and a breakdown of IYM take place, it would be sending a pretty clear signal that softer global prices are in store!
The dollar has a temporary reprieve. How long is anyone’s guess, probably until the news media gets tired of reporting on the euro, and Europeans implement effective capital flight barriers. Once capital stops flowing into the dollar it will fall because the corruption in the US system is at unsustainable levels too. Real growth and real productivity gains are zero, or so close it really doesn’t matter any more. The government tries to cover up with fudged numbers, but they aren’t fooling anybody.
The arrogant 1% think “We can do as we please” but the poor cry out to God who will surely listen and save his people.
Continuing weakness in europe isn’t going to be solved anytime soon.
The dollar looks nice & safe by comparison… at least for a while.
Are things setting up for a break out of a larger, longer term pattern around election time?