HedgeFundLIVE.com — Since I’ve been here I have been emphasizing the basic principles of trading. Basically trading what you see not what you think. If the market is strong stocks should go higher and vice versa. Today I would like to postulate a thesis that I think will play out in the next week. It is totally technically based off of the good old American greenback. As we speak the dollar index is trading at around 75.30, with support around the 75 level. I anticipate that around these levels we should see some money coming into the greenback .
What should transpire from here is a sell off in the Euro which will snowball into money coming out of all commodities a la gold and silver. With this market rally 70 percent commodity based a 5-10 percent sell off in our financial markets is not far fetched. Please keep in mind one thing, this is my first thesis since I’ve been a trader in 20 years. So if you want to lay down your bets, bet on the greenback.
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