• 6 hours Silver Stocks Have Been Decimated In The Coronavirus Sell-Off
  • 1 day How Blockchain Tech Could Make Mergers And Acquisitions More Efficient
  • 1 day America’s Shortage Of This Metal Keeps Trump Up At Night
  • 2 days Bidet Bonanza: Defying The Toilet Paper Shortage
  • 2 days U.S. Auto Sales Fall By 75%
  • 3 days Violating Quarantine? Big Brother Is Watching
  • 3 days Does Gold Still Have Some Room To Run?
  • 3 days Major Acquisition Gives The World’s First Green Ride-Share Another Edge
  • 4 days U.S. Pushes For Digital Currency For Immediate Stimulus
  • 4 days The Impossible Challenges Created By Growing Population
  • 4 days Gold Skyrockets After Fed Pledges "Unlimited" Cash To Boost Economy
  • 5 days World’s Richest Lose $1 Trillion In Stock Market Rout
  • 5 days Gas Stations Shut Down In Venezuela As Coronavirus Crisis Intensifies
  • 5 days The Best And Worse Case Scenario For The U.S. Stock Market
  • 6 days 3 Industries Soaring During The Coronavirus Crisis
  • 6 days The Key To Commercial Hydrogen
  • 7 days Gold Still Beating Much Of The Market Despite Sell-Off
  • 7 days Gold Miners Struggle With COVID-19 Fallout
  • 8 days The Dollar Reigns Supreme In Times Of Crisis
  • 8 days The Most Exciting Green Startups To Watch In 2020
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

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