A little on the dollar...

One of my blog readers was asking about the dollar. I have tended to avoid dealing with it lately because it's not merely a technical issue, but political as well, and charts don't always reveal political moves before they happen...

That said, in spite of the fact that it has recently been stopped in it's advance by one of the major rising trendlines, I think it's tracing out a big A-B-C pattern...Most moves don't stop until they hit one of the .500 nodes and we're quite a ways in time from one of those..So I put the C wave where it might end up...


I think we're in deflation, overall, until the sovereign debt crisis explodes, and we end up devaluing. The timing is tricky here, and if we enter the debt crisis earlier rather than later, it could change my overall bullish bias for the dollar, and keep commodities moving higher in spite of weak demand...