Thursday, March 19, 2015

Massive volatility in the dollar shows instability [UUP]

The recent hard push down and then full recovery could well be a 4th wave (red 4) as shown.  There are two counts shown below.  A standard EW count in black which say that UUP has already peaked and a Wx centric count in red indicating that the last peak, which was a wedge, was not 5 but rather 3.

One thing is sure: that was massive overnight volatility in the dollar.  The dollar may be up big time but it is in no way strong.  Strong currencies do not fluctuate like this.  We will know that the selling has begun when the red up sloping line is broken down.  

Everything is turned on its head.  We live in an antimatter economy.  All it is going to take is for the wrong antimatter to touch the wrong matter and we are going to see some serous paper wealth annihilation occur.  What will it be?  China and Russia backing their currencies with gold and and using them as a petrodollar replacement?  The release of damning information about US political corruption including the 9-11 disclosure that was already threatened?  The collapse of the SWIFT payment as other competition for international settlements come online?  A massive derivitives collapse that makes Lehman and Bear look like Hansel and Gretal?

One thing is for sure: the world needs to be done with the dollar as a mechanism for international payments.  When that happens, all those dollars are going to be sent back to the US at the same time and the fed is not going to be able to control it.

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