Thursday, October 23, 2008

Dollar Sentiment Approaches Resistance

my Dollar Sentiment index (actually it's just a ratio: USD Index divided by the price of Gold) has approached important resistance.

whether today was the ultimate and forever high is unclear. it's hard to bet against these type of trends. you Know they'll end sometime, but it's the meantime that's so costly.

in any case, the Dollar Index could slip back to 80 or 79 and still be within a bull-trend.

the Dollar's due for a pullback, but it could easily be from a higher level than this. the view is nice from the sidelines.