The markets are beginning to anticipate a weak $USD.
First and foremost, the Emerging Market ETF (EEM) is in the process of bottoming.
EEM was crushed by the $USD’s strength this summer. But it’s now starting to look like a major turn is approaching: EEM has just broken above major resistance and is in the process of preparing for an assault on the top trendline of its descending wedge formation.
Elsewhere in the markets the $USD has reversed hard and is about to break through support. This is looking more and more like a “false breakout.” And the thing about false breakouts is that they usually result in VIOLENT declines.
What does all of this mean?
The financial markets are beginning to anticipate a WEAK $USD. The most likely reason for this is that the Fed is in fact MUCH closer to ending its hawkishness/ rate hikes that most realize.
This will lead to the $USD dropping hard as inflationary/reflationary trades soar higher.
The long-term chart paints a nice picture for what I’m expecting. The $USD has in fact been forming a series of lower lows since 2014. The next low will take us to the mid’80s (see the red arrow).
That’s a heck of a “tell” from the markets. And it’s “telling” us that we’re about to see a major inflationary move as the $USD drops hard.
- This is the future they have planned for us…
- Are They Essentially Erasing Most Of The Internet?
- Heads Up: Something big is going down. Just about every commodity is collapsing in price. Things deteriorated so much that all the supply chain metrics have become way less constrained
- Bill Gates: Social Credit Scores Are An “Asset”
- Horrific news from Sodom Island
- China’s Warning ENTIRE Economy Will Collapse In 34 Days
- The Dead Internet theory just got even creepier….
- People Are Going To Go Absolutely Insane When Food Prices Double Or Triple From Current Levels
- CDC is quietly deleting misleading information from their website. The following statement was removed from their website between July 16th and July 22nd
- If you are waiting for recession, inflation down, FED pivot, etc., by the time it happens, markets would have already priced most or all of it in. Right on schedule… Michael Burry says the Big Crash is anytime now!
Views: 0