The U.S. Dollar Approaching The Year Low
The U.S. Dollar was down sharply today and as you can see in the above chart the dollar is close to testing the year low.
I've been bearish on the dollar since June 18th which is when I posted on my other blog that the dollar put in a top.
I remember reading a few weeks ago how everyone thought the dollar had bottomed and that we would see higher prices to come. Whenever I am in the minority as far as my positions are concerned I usually do well.
The past few days have been very profitable for me because I've been fortunate enough to be long the British Pound, Euro and Swiss Franc and all of these currencies are having strong moves to the upside. I'll look to exit these longs if the Euro and Swiss test their highs for the year.
If you are curious as to why I bought theses currencies, you can click the following links where I explain in detail what I was seeing.
Bearish On The Dollar
Bullish On The Swiss Franc
Bullish On The British Pound
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![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_4.gif)
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-euro-small.gif)
5 comments:
Hello Kevin.
I often read your blog and I appreciate the fact that you share your impressive work.
Regarding the dollar and gold... It seems to me that with the dollar as low as it is, gold should be a lot stronger than it is. I believe you wrote about this a while back.
I'm wondering if we see more weakness in gold before we see strength. Any thoughts on the matter?
Thanks,
Joe
Hey Joe,
That's hard to say...I'm not looking to short gold and at the same time I'm not looking to buy gold either because of the way it is acting in the face of a weak dollar.
I know gold rallied today but over the past few weeks gold should be a lot higher given what the dollar has done. I think I am going to leave gold alone for awhile until I see something bullish develop.
Kevin, what in your opinion has caused the dollar to drop so dramatically in the last couple of days? I think it is the world's perception that we are getting our goldilocks economy.
To be honest with you I really don't know why...and in my opinion most other people don't exactly know why either...
I'm a big fan of your website--you educate so many people about trading and that's exactly what I'd like to do with my upcoming book, An American Hedge Fund (10.01.07). I'd love to send you an advance copy for your review.
The hedge fund industry is now a $2 trillion industry and yet, due to industry regulations, the general public knows little about them. This needs to change. I promise this not the typical boring finance book!
My claim to fame is that I turned $12k into $2 million trading waaaaay too many microcap stocks from 1999-2002, created a hedge fund, became the #1 Short Bias Hedge Fund from 2003-2006, starred in the TV documentary Wall Street Warriors (500 airings now!!), and began appearing regularly on CNBC all before the age of 25.
This is no BS "How To" book--its the true story of a hedge fund created from scratch. People need to realize the hedge fund industry is not just about billion dollar blow ups and huge funds created by investment professionals who are already wealthy. My 'Rocky'-like story will surely inspire generations to come to take part in our true national sport, finance.
If you like it, I'd love to get a blurb from you by August 1st that I'll print on the inside or back cover (which should drive a few people to your site) and hopefully you could post a review around press time in October. No pressure either way.
Timothy Sykes
tim@timothysykes.com
http://www.timothysykes.com
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