• 547 days Will The ECB Continue To Hike Rates?
  • 547 days Forbes: Aramco Remains Largest Company In The Middle East
  • 549 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 949 days Could Crypto Overtake Traditional Investment?
  • 954 days Americans Still Quitting Jobs At Record Pace
  • 956 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 959 days Is The Dollar Too Strong?
  • 959 days Big Tech Disappoints Investors on Earnings Calls
  • 960 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 962 days China Is Quietly Trying To Distance Itself From Russia
  • 962 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 966 days Crypto Investors Won Big In 2021
  • 966 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 967 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 969 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 970 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 973 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 974 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 974 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 976 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Bulls Have 3 Weeks Left

3 weeks, that's how long the bulls have left before stocks roll over and begin the next intermediate degree decline. That being said, the next 2-3 weeks should yield see some very healthy gains in virtually all asset classes. Why is that you wonder? Well, it's because the dollar has begun moving down into an intermediate degree correction which will, in the next few weeks, fuel the 'risk-on' trade.

As of Friday the dollar was on the 11th day of its current daily cycle. The normal duration of the dollar index daily cycle is 18 to 28 days, with the average being about 23 or 24 days. This suggests that the dollar should bottom somewhere around August 21st or 22nd. As you can see in the chart below whenever the dollar moves down into an intermediate degree trough it generates strong gains in asset prices.

$USD Chart

What follows, once the dollar bottoms and its next intermediate degree rally begins, is not going to be pretty. Stocks are going to start to struggle and ultimately move down hard in September and probably October if the Fed doesn't unleash QE3 at the September FOMC meeting.

By the end of August and certainly by the time we get into September the markets are going to call the central bankers bluff, and it is going to take more than words and the threat of quantitative easing to keep asset prices propped up.

I have covered the rest of the forecast in depth in the weekend report available to premium subscribers.

I will again offer the $1 two day trial subscription to traders that would like to sample the premium newsletter. If you decide you would like to continue having access to the newsletter after the two day trial, it will automatically convert to a monthly subscription when your two day trial expires. If you decide the newsletter isn't for you just cancel your subscription by following the directions on the homepage before your trial expires.

 


Click here to access the premium newsletter subscription page.

 

Back to homepage

Leave a comment

Leave a comment