Monday, November 24, 2008

US Dollar

Today the US Dollar index fell over two points ( a huge one-day drop) as investors started to wise up to all the recent bailout failures - Citigroup's $300+B taxpayer guaranteeed lifeline is just one more flashing indication that this crisis will soon get much worse.

With that said, the US dollar is also declining due to technical reasons. Note the severely oversold condition (PPO Oscillator - black line top right - up towards three). Also take note of the downward turn of that same PPO Oscillator - an indication the oversold condition will soon let out some (if not much) of its excess.

This dollar downturn will be very positive for Gold/Silver, Oil and other commodities, but bad for consumer prices a little further down the road.

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