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The U.S. Dollar just had its 6th best quarterly rally in the past 34 years, see upper left table. (Source Ryan Detrick)
This rally has taken the U.S. Dollar to the top of a channel that that has been in place for the past 10 years and is hitting a rising resistance line that has been in place for the past four years.
This strong rally of late has increased the confidence of many people, as 87% of investors are now bullish on the dollar. Before the 90-day rally, only 24% of investors felt good about being long the US$.
We all know that Gold, Silver, Gold Miners, Crude Oil and the grains have had a rough go of it recently, with the odds high that the Dollar’s rally had something to do with the weakness in commodities.
What the U.S. Dollar does in the very near future could have a big impact on portfolio construction between now and New Years Eve.
Keep a close watch on King Dollar going forward, this could be a game changer in the world of portfolio construction!