• 6 hours Gold Miners Are Having A Stellar Second Half
  • 1 day How 3D Printing Is Turning Each And Every Industry On Its Head
  • 1 day Is The $3.5 Trillion Healthcare Industry About To Get Much More Transparent?
  • 2 days Gamblers Are Betting Big On Trump’s Impeachment
  • 2 days Even Banks Can't Answer Aramco's Trillion Dollar Question
  • 3 days Will Bezos Buy The Seattle Seahawks?
  • 3 days 6 Tech Trends Transforming The Travel Industry
  • 4 days Ousted Uber CEO Cashes Out $500 Million In Stock
  • 4 days Trump Prepares For Another Key Tariff Decision
  • 4 days The Free Money Bubble Is About To Burst
  • 5 days The Crushing Reality Of Poverty In America
  • 5 days Should You Buy Into The World’s Largest IPO?
  • 5 days The Infinite Possibilities Of Cosmic Energy
  • 6 days Analysts Link Walking To Economic Growth
  • 7 days Will Japan Turn Its Back On The Aramco IPO?
  • 8 days Global Debt Soars To $188 Trillion
  • 8 days The World's Largest Gold Miners Are Getting Creative
  • 9 days Twitter: The Saudi Spy Tool To Bring Down Dissidents
  • 9 days Broad Commodity Funds Don’t Give Enough Exposure To Gold
  • 10 days Here We Go Again: Another Giant Telecoms Mega-Merger
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Matt McCracken

Matt McCracken

Matt McCracken is the founder of McCracken & Company (MAC). The MAC is a financial advisor based in Dallas, TX offering asset management to individuals…

Contact Author

  1. Home
  2. Markets
  3. Other

USD Has a Really Bad Week - Immediately After CNBC Issues a Buy on It

On 10/26/16, CNBC posted a story on the "Golden Cross" taking place in the USD and how it was a sure bet the currency was set to continue appreciating. I posted a contrarian piece which you can read here stating that the all-powerful indicator was a terrible hoax going 0 - 3 in the past year. Now make that 0 - 4.

Now CNBC posts this article about how the USD just experienced its "worst week in 12". Obviously, with no apologies for their atrocious call made just the week prior. Even more proof Wall Street uses these shysters for their pump-and-dump schemes. The story appeared on CNBC the day after the recent, multi-month high in the USD. Timing could not have been worse.

The USD was carving out a parabolic curve. Parabolic curves can defy gravity for a long, long time but eventually they give up. In this case, it gave up fairly easily. As you can see on the chart, the USD has fallen and fallen hard this week. I suspect it will gain some traction near one of the major moving averages which we know are close to each other because they just crossed over one another. The 200 day moving average is still declining which is bearish. If the 50 day rolls over, then they will be in "bearish alignment" but that will likely not take place for a bit.

Our investment thesis is the entire FED bubble, which has pushed both equity and bond prices to unreasonable levels, will not be busted until something happens in the currency markets to devalue the USD. We believe the relative value of the USD compared to other currencies is the most important indicator to be watched.

 

Back to homepage

Leave a comment

Leave a comment