US Dollar: "Can't Stop. Won't Stop."

October 5, 2022

Stocks have been under pressure consistently since Q1 last year. That was 20 months ago.

That's precisely when the United States Dollar stopped falling and started to rise.

And this wasn't just against the Euro, which represents 58% of the Dollar Index, we saw Dollar strength across currencies from all over the world.

The US Dollar was the only safe haven asset this year. It wasn't US Treasury Bonds, it wasn't Japanese Yen and it certainly was not Gold.

The only safe haven was the US Dollar.

We talked about this on BNN Bloomberg yesterday:

So as money went into the Dollar, why did it do that?

It's because it was fleeing risk assets.

So what does a world look like where the Dollar is NOT going up every day? Why would the Dollar be falling?

By my math, if the Dollar is weakening, it's because it is no longer needed as that safe haven, and money is most likely being put to work into risk assets.

Here's a look at the US Dollar running into a key Fibonacci extension level and failing up there over the past week:

And from a sentiment perspective, by now everyone knows the Dollar has been ripping.

It's no longer a secret.

Journalists have even caught on. They're even going out of their way to design really obnoxious covers for their magazines:

There's been so much demand for US Dollars, that the exchanges are inventing new ways for investors to buy them.

Does that sort of thing normally happen early on in trends, or late in the cycle?

I can't think of anything more bullish for stocks than a weaker Dollar.

We discussed what we're doing about it on this week's Live Conference Call.

You can catch the replay here if you missed it.

And if you'd like something more short-term, Kimmy is absolutely on fire.

She was 4-5 in this week's trading, last I checked.

Her hit rate is off the charts. I've never seen anything like it.

She's absolutely crushing it, and members of Swing Trader Pro have already paid for their subscriptions for the entire next year, just in the first few days of trading.

Unbelievable.

Come see it for yourself.

She's live trading every single morning.

Click here to join us.

- JC