• 2 days Investors Are Patient With Unprofitable Giants
  • 4 days Wells Fargo Back In The Scandal Spotlight Once Again
  • 6 days 5 Stocks To Keep A Close Eye On This Year
  • 7 days As Auto Giants Flail, Look To Chip Stocks For Gains
  • 8 days Central America Is Ready For The Bitcoin Hustle
  • 10 days China’s Video Game Restrictions Unlikely To Slow Down Booming Industry
  • 11 days Top Performing Stocks As Inflation Fears Grow
  • 12 days US Airline Stocks Take A Beating On New EU Restrictions
  • 13 days This IPO Could Open Sustainable Fashion Floodgates
  • 14 days Crypto Crime Nets Another $2B Fraudster
  • 16 days This Week’s Hottest Meme Stocks
  • 18 days Why World Markets Should Be Watching Germany Closely
  • 20 days Could ‘Cultured’ Meat Rival The Plant-Based Megatrend?
  • 22 days ‘Easy Money’: Crypto Is Still Attracting Newbie Investors
  • 23 days Foreign Syndicates May Have Stolen Up To $400B In COVID Benefits
  • 24 days Gold Jumps Above $1800 Ahead Of Jackson Hole Summit
  • 25 days International Banks Blacklist Afghanistan Following Taliban Takeover
  • 26 days China’s Tycoons Are Getting A Serious Reality Check
  • 28 days U.S. Cannabis Space Heats Up With Telling Tilray Acquisition
  • 28 days Consumer Price Index Hits 13-Year-High
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