It looks like the triangle I discussed for the US
Dollar might play out, it also measures back to the Mar 09 highs!
If that happens, then I would expect a large ABC pullback, possibly
to retrace 38% - 50% of the rally from the Nov lows, but after that
then another major rally. Looks like Precther was ultimately
right on the Dollar, these are impulsive wave counts moves
higher
The Dollar move supports the deflationary scenario instead of
the inflationary one.
Matt, Why does a strengthening $US support a
deflationary move rather than an inflationary trend? Doesn't
the current $US strength reflect more of a flight to safety
from the Euro (the lesser of two evils)? Beck67er
Yes that's true, we are seeing a flight to safefy (lesser of two
evils), however remember that's what we saw in 2008, the dollar had
a strong rally.
All of this debt around the world is deflationary, not
inflationary, just printing money is not a sure way to inflation,
it's more about economic grow and bank lending and credit lines.
It's just my personal opinion, but the inflation scenario is
too easy, too mainstream, the contrarian in me tell me that we will
first see deflation, and then maybe we'll get inflation down the
road. And look at commodities, the only thing holding up is
gold for now, the CRB index tells us that inflation is not a
problem
watch this video to understand how the money supply really
works. There is far too much debt out there to just easily
print our way out
Gold:Silver ratio agreeing with you Matt as silver is badly
outperforming gold % wise and thus a deflationary
scenario.............Old adage is as silver underperforms liquidity
is leaving the market...........yikes!
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
US Dollar
Posted by matt on 4th of Jun 2010 at 08:56 am
It looks like the triangle I discussed for the US Dollar might play out, it also measures back to the Mar 09 highs! If that happens, then I would expect a large ABC pullback, possibly to retrace 38% - 50% of the rally from the Nov lows, but after that then another major rally. Looks like Precther was ultimately right on the Dollar, these are impulsive wave counts moves higher
The Dollar move supports the deflationary scenario instead of the inflationary one.
Question for Matt
Posted by beck67er on 4th of Jun 2010 at 11:04 am
Matt, Why does a strengthening $US support a deflationary move rather than an inflationary trend? Doesn't the current $US strength reflect more of a flight to safety from the Euro (the lesser of two evils)? Beck67er
Yes that's true, we are
Posted by matt on 4th of Jun 2010 at 11:11 am
Yes that's true, we are seeing a flight to safefy (lesser of two evils), however remember that's what we saw in 2008, the dollar had a strong rally.
All of this debt around the world is deflationary, not inflationary, just printing money is not a sure way to inflation, it's more about economic grow and bank lending and credit lines. It's just my personal opinion, but the inflation scenario is too easy, too mainstream, the contrarian in me tell me that we will first see deflation, and then maybe we'll get inflation down the road. And look at commodities, the only thing holding up is gold for now, the CRB index tells us that inflation is not a problem
watch this video to understand how the money supply really works. There is far too much debt out there to just easily print our way out
MONEY AS DEBT
Gold:Silver ratio agreeing with you
Posted by bullau on 4th of Jun 2010 at 10:00 am
Gold:Silver ratio agreeing with you Matt as silver is badly outperforming gold % wise and thus a deflationary scenario.............Old adage is as silver underperforms liquidity is leaving the market...........yikes!