Dollar Bull

The above chart shows previous support which is my near-term tartget around 86. That area will be the test. If we break decisively ABOVE that level a multi-year USD bull market will be confirmed. I would rate this potential right now around 50%, but rising every day. A multi-year bull market in the USD would be what few expect and would fit in with another thesis of mine. That this bubble was almost twice as large in price as the 1920's bubble, so we will see a collapse at least twice as great. If not in price, then in time. Thus, a 2015 low in stocks would fit with a long term dollar rally. This is premature speculation. But the longer the US Fed fights the trend, the longer it will take to play out. They could have forced us to take our medicine a year ago, but instead tried pulling rabbits out of a hat. Someday, they will no longer have any rabbits. But it seems likely that they will continue to fight the trend. That is what their paymasters the bankers will insist upon. Until the people stand up, and then they will have to pay off the people. I don't think the populism will work out much better. So expect a long, drawn out decline, that will stair step its way lower, until the capitulation point is reached. That will be 2013-2014 for real estate and then shortly thereafter for equities. For now, what the dollar, that is the key.