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Watch that US Dollar!

I posted this note about a US Dollar upside break last week, and can now say that this appears to be the real deal.  It probably means that allocations should be adjusted accordingly.  I would be surprised to see equities or commodities (including gold) rise if/as this US Dollar rally picks up steam.

It has now broken above the 50 and 200 day moving averages.  And being as today's a Friday, barring a late-day sell-off, this strength will be passed onto the more meaningful weekly chart.

Watch out because it is exactly what happened in 2008 (a delayed, but very meaningful Dollar rally).  I will try to get my research together over the weekend and post something on Seeking Alpha by next week...