Dollar index dropping pretty fast

[peilthetraveler]

As of this writing it is 77.6 Its funny that for every 1% gain in the dow, we lose 1% in dollar purchasing power. So its basically phantom gains we are having.

By the time the dow hits 10,000 we will be at a dollar index of about 70 and I bet nobody reports that, only that we are now in a "bull market" as they will say.

 

[Optional]

support is right about now at 7750-7760.
well see if it holds

 

[makloda]

Why not just short the dollar index and make risk free gains?

After all the ET consensus is that the Dollar is going to "collapse". Trade accordingly and put your money where your mouth is.

 

[Ivanovich]

Whenever these type of extreme moves in the dollar index occur, there is invariably something that causes a reversal pretty soon.

Of course, it could be "different this time" and we could fall over the abyss, but I remain skeptical.

That being said, shorting the crap out of the dollar with comdols seems to be the best bet right now, so long as you keep REAL tight stops.

 

[Roman Candle]

Quote from peilthetraveler:

As of this writing it is 77.6 Its funny that for every 1% gain in the dow, we lose 1% in dollar purchasing power. So its basically phantom gains we are having.

By the time the dow hits 10,000 we will be at a dollar index of about 70 and I bet nobody reports that, only that we are now in a "bull market" as they will say.

I was just say the same thing.

 

[Roman Candle]

Quote from makloda:

Why not just short the dollar index and make risk free gains?

After all the ET consensus is that the Dollar is going to "collapse". Trade accordingly and put your money where your mouth is.

Not everyone just thinks about money. There are other ways to play the drop in the currency. Some American have a little self respect.

 

[Debaser82]

Who owns any dollars anymore anyway...

Didnt you guys catch Peter Schiff or Jim Rogers on youtube?

 

[peilthetraveler]

Quote from makloda:

Why not just short the dollar index and make risk free gains?

After all the ET consensus is that the Dollar is going to "collapse". Trade accordingly and put your money where your mouth is.

I have my money where my mouth is. I am completely set up to profit from an economic collapse but i refuse to use margin to trade. I dont trade with money I dont have. Thats how people get slammed in trading.

 

[Roman Candle]

Quote from Ivanovich:

Whenever these type of extreme moves in the dollar index occur, there is invariably something that causes a reversal pretty soon.

Of course, it could be "different this time" and we could fall over the abyss, but I remain skeptical.

That being said, shorting the crap out of the dollar with comdols seems to be the best bet right now, so long as you keep REAL tight stops.

The inverse H&S pattern in the US indexes spell a lower US currency.

Same thing happend in 2003 when the SP was pulling up off the lows. The dollar kept crashing till Jan 2005.

The Dollar has a long way to fall, right around 70-71 it will stall. The Chinese will dumping treasuarys and yields try and move higher, the Fed will buy them to keep the yield from rising to fast.

Man this market is so rigged.

 

[niceneasy]

hard to conceive a dollar collapse...