Attention Will Turn To The U.S. Dollar Soon

The media's intense, unbalanced focus on the troubles within the Euro Zone should be a major warning sign for astute trades. The US Union (States) are also struggling with massive budgetary holes driven by excessive consumption have already drawn from the bailout well numerous times under relative media blackout. Yet each time the bucket is dipped, it is camouflaged by ‘redirective’ headlines.

Who's the more foolish: The fool, or the fool who follows him?

The eventual termination operation Euro necessitates the following question: what’s next? The dollar index strength, a byproduct of Euro weakness, is cyclical rather than structural. The US Union requires similar, possibly significantly more, withdrawals from the bailout well as the European Union.

Jim said it best this morning,

The momentum decline of the euro in operation short of the euro named "Shark Feed' is the best precursor of the " Shark Feed" being a terminal attack on the US dollar very soon.

The 12/3 down gap on heavy volume has been filled on contracting volume. This suggests that the cyclical strength in the Dollar Index is weakening. A turn in the leveraged money flows from short to long by smart money will mark the turn in the dollar.

U.S. Dollar Index ETF (UUP):


Heading: Stocks, euro hit by Spanish credit rating warning

World markets and the euro fell Wednesday after Spain was warned it may have its credit rating downgraded, echoing a similar report on Belgium the day before and renewing worries about Europe's debt crisis.

In Europe, the FTSE 100 index of leading British shares was down 22.92 points, 0.4 percent, at 5,868.29 while Germany's DAX fell 55.70 points, or 0.8 percent, to 6,971.70. The CAC-40 in France was 34 points, or 0.9 percent, lower at 3,868.87.

Source: finance.yahoo.com