U.S. dollar and why it matters. Currencies trend over years, the average run is around 2-1/2 years, and when they turn it is a relatively slow process accelerated lately by instant quotes. In the chart above, a change in the down trend will only be confirmed when the two prior highs are taken out: 7750 and 7795. Will it turn? Absolutely, because the EU exports are becoming too expensive and they will weaken their currency, AND the U.S. is concerned that the dollar won't buy anything if the downward trend continues. How to profit? The "smart" money is buying foreign anything with the cheap dollar with the intent of selling the "anything" down the line when the dollar is strong and making a profit. Us slobs? Listen, if you can't afford a stolen Modigliani from Zürich (Boy in Green Jacket after scoring a 420 on his SAT on left) you are an asshole anyway and who cares about you?
2/12/2008
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