Safehaven | Charts Suggest Peak Dollar Occurred August 15, 2008

August 26, 2008

Charts Suggest Peak Dollar Occurred August 15, 2008
by Richard in Bellingham

Monday, 25. August 2008, 03:47:21

Introduction

Charts suggest Peak Dollar occurred August 15, 2008 and they encourage short selling of the USD/JPY, the US Dollar and stocks.

Details

Here is the UPI.com chart of the Nasdaq imposed over the USD/JPY which suggests that August 15, 2008 was Peak Dollar

The Nasdaq, QQQQ, had an high of 48.25 on August 14, 2008.

Here is the UPI.com chart of the S&P imposed over the USD/JPY which also suggests that August 15, 2008 was Peak Dollar.

The S&P, SPY, had a high of 130.71 on August 11, 2008.

Here is the UPI.com stand alone chart of the USD JPY suggesting that Peak Dollar occurred August 15, 2008.

The charts above are provided courtesy of UPI.com which are powered by FinancialContent Services, Inc and courtesy of Stockcharts.com

Here is the chart of USD/JPY with a current price of 110.1250 courtesy of FXStreet.com; it shows a quadruple top going back to August 18, 2008.

Note how the current price of 110.1250 came via a rise associated with the World Bankers Summit in Jackson Hole Wyoming; and how the price is near the August 15, 2008 price of 110.53 seen in this chart courtesy of ActionForex which was cited by LFB-Forex in ActionForex article Chart of the Day - August 15, 2008 - USD/JPY as being a swing lower -- a reversal to trading lower.

ActionForex in chart-article USD/JPY Daily Outlook, that was produced a few hours later than FXStreet.com quote of 110.1250, shows a similar price, and lower price on the USD/JPY of 109.91 .... the chart is helpful because it shows a sideways fan with five tops .... the more fans, that is the more sideways consolidation, the greater likelihood, the price will drop.

Conclusion

As I write, we are on the verge of a drop in the USD/JPY, and thus a fall in the US Dollar, and a fall in stock market values.

I strongly encourage a two fold investment strategy.

First, to garner wealth, a purchase of SKF, in a trust account, and a sell of the USD/JPY, at a price of 109.91, in a Forex account.

Secondly, to preserve wealth, a buy of gold, as it trades inversely of the $US Dollar. I recommend a dollar cost average purchase of gold at BullionVault and GoldMoney.

SKF is currently trading at $124.25

The US Dollar, $USD, is currently trading at $76.99.

Gold, $GOLD, is currently trading at $819.

Ongoing stock charts show Monday August 11, 2008 to be 'a type of Peak Wealth'

Investment desire peaked on Monday August 11, 2008 due to increased risk aversion to debt at banks and investment bankers

The ongoing Yahoo Finance five day chart of the financials, IYF, compared to the consumer discretionary stocks, VCR, and the S&P

The ongoing real-time Yahoo Finance 5 day chart of the Russell 2000, IWM

The ongoing real-time MSN 5 day chart of the Russell 2000, IWM

The ongoing real time Yahoo Finance 5 day chart of the S&P, the Nasdaq and the Russell 2000, IWM

The ongoing real time Yahoo Finance chart of the Banks, KBE

Ongoing Dollar charts suggest August 15, 2008 was 'Peak Dollar'

The ongoing real-time INO real-time chart of the US $ Index. The Dollar Index DX traded up to approximately 77.30 on August 15, 2008.

The ongoing real-time twenty four hour Kitco.com chart of the US Dollar, $USD. $USD closed at 77.15 on August 15, 2008.

The ongoing real-time Yahoo Finance 5 day chart of UUP UUP closed at 23.93 on August 15, 2008.

The ongoing real-time FXStreet.com hourly chart of the USD/JPY. The August 15, 2008 price of the USD/JPY was 110.53

The ongoing real-time UPI.com chart of the USD/JPY. August 15, 2008 price of the USD/JPY was 110.53

The ongoing real-time Yahoo Finance 5 day chart of GLD. The August 15 price of GLD was the spike down price of 77.63 and the August 22 price of GLD was 81.08.

I wrote a bearish article on the US Dollar

I wrote Sentiment Turns Bearish On The USD/JPY. I am a blogger who writes on the investment demand for gold; I suggest that before anyone make an investment decision, that one consult with a licensed investment professional.

The investment professionals are either neutral or bullish the US Dollar

Jon Nadler of Kitco on August 22 2008 takes a neutral position

Commodities resumed their downtrend overnight, following a surge in the US dollar that basically obviated yesterday's decline and following an easing (albeit not too dramatic) in crude oil values after yesterday's "Molotov Cocktail" (nice word pick from RBC's George Gero) explosion to the upside. Markets were fixated on the unexpected stall in the UK economy, the London real estate shakeout and the Jackson Hole meeting of the wise men and women who are supposed to come up with a solution to the on-going credit debacle. Thus far, the solution appears to be to wait. Time and supportive words are supposed to allow the markets to work this out. In any case, the same markets will have a far better grasp of where this is all going once a firm decision is made in the Fannie/Freddie operating room and either the patient is dissected while still alive, or its various organs are donated back to the government.

Professional Trader Tim Knight is very bullish on the US Dollar and bearish on gold on August 23, 2008

I need the "one-two punch" of both energy/oil/gold falling and equities falling. That will supercharge everything, based on how I am positioned ... The dollar is heading much higher.

Richard in Bellingham
The Resourceful Bear Blog

I blog to communicate an observable and ongoing investment demand for gold, the 'Liquidation Thesis', and the fulfillment of Bible prophecy.

My investment maxim is simple: in a bull market be a bull; in a bear market be a bear. In a bull market, one buys on dips; in a bear market, one sells into strength.

Research indicates that the stock market has transitioned from bull to bear; and that one's wealth is now best garnered and protected by investing in gold.

I'm the Resourceful Bear, and I say: "Interest rate inflation, producer price inflation, and consumer product price inflation is on the way and that is a gold thriller, and a stock and bond killer".

I am a blogger who writes on the investment demand for gold; I suggest that before anyone make an investment decision, that one consult with a licensed investment professional.