Sunday, March 13, 2005

Continuing Cracks - Part 5

Sorry, the chart keeps disappearing. Check the link above.

"Note how the dollar index has broken out of the uptrend channel formed during its recent bear market rally. Note too that this index - currently at 81.42 - is just 89 pips, or a mere 1.1%, above its December 30th low of 80.53. It could break through that low at any time, and if it does, the dollar could plummet.

At some point or another, the dollar will indeed plummet, which is the conclusion of my book, The Coming Collapse of the Dollar. I thought that we might have more time to prepare for this coming debacle, but the above charts suggest otherwise. They are signaling profound weakness in the dollar. We know from the growing federal government deficits, the trade deficits and the mountain of debt in the US that the dollar is indeed sick. But these charts suggest that the dollar is on its deathbed.

In my alert of February 14th I advised: "It will be worthwhile to watch the Dollar Index carefully here. Any sign of weakness will be an indication that the bear market rally in the dollar is finished, and that its long-term downtrend is about to resume." The long-term downtrend in the dollar is about to resume.

I find it hard to believe that the dollar cannot mount any meaningful bear market rally, but it hasn't. So get ready. The dollar looks ready for another waterfall decline, like the one we saw last Fall. Another waterfall decline in the dollar would mean that gold is ready to soar."

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