McHughs latest thoughts.. supporting FB's thoughts.. major decline close at hand...

SilverNut

"Fundamentally, the

Dollar has been in high demand during this crisis, as 10 trillion dollars of wealth have been destroyed in the stock market and the housing market. That is an entire year’s GDP.That creates a shortage of Dollars. A credit market freeze has also placed increasing demand for dollars.As lines of credit were cut, as the ability to borrow was cut off, it meant that cash was in demand, thatdollars were of increasing value. Further, given the international scope of this crisis, a flight to quality, to U.S. Dollars as well as U.S. Treasuries was occurring, increasing demand for Dollars.

Under these conditions, the Dollar should have rallied to 100. It did not, only rising from the high 70’s to the low 80’s. Technically, this confirms that the Dollar’s minor rally was corrective in an ongoing long-term Bear market.

Our forecast remains the same, that the Dollar will fall sharply, long-term into the 40’s. This means hyperinflation or competition from another currency that backs itself with gold is coming.

Technically,

the Weekly and Daily Full Stochastics suggest a top for the Dollar is close . The Monthly (long-term) Full Stochastics are also working their way to the level where a top is approaching. Patience during the height of this market turmoil should payoff for Dollar Bears."