The Dollar could decline and stocks could too…..WTH (What the Heck!!!)
CLICK ON CHART TO ENLARGE
The above 20-year chart compares the U.S. Dollar to the S&P 500. It reflects there have been times when the US$ and SPY have been fairly correlated (move up and down together/1995-2003/green shaded areas) and there has been times when the US$ and SPY have been fairly Non-correlated ( move in opposite directions/2003-2011/pink shaded areas).
Since mid-2011 the US$ and SPY have been fairly correlated again, both of them moving higher for the most part. The rally over the past few months has caused traders to become rather bullish on the US$, with bullish sentiment hitting 76% bulls, which would suggest at least a pause in the Dollars rally is due!
Could a Dollar pause/decline take place and the S&P 500 follow it? Stay tuned, anything is possible these days!!!
WHILE THERE IS A DISTINCT POSSIBILITY THIS COULD HAPPEN, BUT WHAT IF THE PATTERN BREAKS AND GOES BACK TO THE OLD PRE-2011 PATTERN? IT SEEMS EVERY 5 YEARS OR SO THE PATTERNS CROSS?
Soon the usd will fall back and take the overextended stockmarkets with it,then the euro is going to soar because when a general bankrun in Europe occurs which is in the cards right now because of the Cyprus contamination ,the euro will have to go up,when money leaves the banks there will be a shortage comming. The usd is not safe and gold is being manipulated down,where else to go?
Yet then again, with problems in Europe (Portugal down 4% today, greek national bank down 7% today, 30% since a month, 60% YtD and 75% since October…), could stocks fall without the euro falling at the same time? So dollar and euro both fall in relationship to the Yen? possible, but effect shoudn’t be too large on the dollar index…. can’t imagine stocks falling and euro rallying(maybe for a short time) !
Love your charts. Anything is possible these days???? Can’t stop laughing.
You are much too good a chartist not to see what may happen in the next few days.