Friday, February 22, 2013

Leaving the Station

While the collective market opinion was under the persuasion of a conventional technical wisdom, those of us following the fingerprints of a broader market psychology have been rewarded as the US dollar index extends its reflexive trajectory out of another intermediate low. 
Not surprisingly, this has come at the expense of the commodity sector - which appears to be catching up to a shifting zeitgeist that sees the US dollar as a major threat to what was a positive carry for the asset class. 
A more nuanced guide for the dollar can found through the euro on the Mirrored Pivot chart from a few weeks back (see Here).  
As with each market cycle, explosive returns are made and lost in transition - as the train leaves the station. Although a shallow retracement is likely next week, the US dollar appears to be well on its way to clearing the platforms and exiting the station.