Where is the US Dollar going: Forecast and analysis based on historical events with charts.
Hello everyone.
we all know I am a long time gold\silver bug, however I al understand that the Dollar should not be ignored as it currently is a driving force worldwide, despite what people may have you believe.
OPTIONAL: Music for this potential contrarian play.
With the recent action going on in the crypto-currency world, bond markets, gold\silver markets, everyone seems to be shooting down the dollar... but lets look at history to be able to gauge at what may lie ahead.
If the chart above means anything to us, it is telling us that we are in a period of correction for the dollar. Notice the circles and time frame.
This is not absolute, but perhaps let's see more historical data to help us understand what may be happening. If we continue to see the dollar in these ranges during June, it tells me history may repeat itself and it would help to position yourself to profit form it.
Everyone keeps talking that the US is entering another recession.... OR that we are already in a recession. I always say, listen to everyone, do your own research, and make your own decision based on everything you learned and by what you were able to calculate or deduce.
Let's see how the dollar has performed in the past during an actual recession.
One thing I noticed through my own research is that a recession typically means averything is down, morale, jobs, parties, income, payroll, and all other items. People also call this deflation meaning all items are going down in value.
Where does this leave the US dollar. ..... Well... if everything is going down in value, but you still have your job, then for you, your dollar is able to buy stuff cheaper...so you gained purchasing power.
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Consider this, although I am a gold\silver bug, I am also aware that the US would not like to lose it power over the world and if Trump is attempting to "Make America Great Again", then shouldn't the US dollar have more purchasing power in order for american to be able to afford more items and buy land, guns, food, and go out more often... Perhaps Millennials could finally buy a house if the dollar rose in purchasing power.
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Let's see this in recent history of where the dollar has been before....
During crisis moments around the world, the dollar seems to be the best play. The above references the crisis in Latin America and that's when the dollar went berserk. Could this happen again... YES... Very likely since the whole world seems to be running into some sort of trouble in one way or another.
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Just to be clear. I too expect the dollar to crash, but not yet.... I am a firm believer that this WILL happen but the timing of most people are probably wrong because they are being biased towards their beliefs and fears and in some cases people allow the FOMO (fear of missing out) take over and jump on bandwagons allowing for chaos to ensue n shorting or helping the dollar.
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Notice that in the charts above, the dollar spikes during market crashes, but then also begins to dose off.... Right now, I believe we are in the point where the dollar seems to be falling, and everyone is calling for the dollar collapse, but personally, this means chaos EVERYWHERE and I for one am not ready for that, just not yet at least.. Everywhere you look today, it is nothing but bad news... death, crime, sorrow, poverty, and more and more of this... so where do people go to for shelter.... GOLD \ SIVLER might be too expensive for the masses, but the dollar is still a safe haven for the uneducated about cryptos and other alternatives.
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What I am saying is this. If you are tech savy or like to stay informed, then you and I both know about cryptos and gold\silver, but the masses are not fully awake yet. This means that the masses will lean on something they have been brainwashed to believe is a safe haven even though you and I both know it is not, but this does not mean we can't profit from it.
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Eventually after the economic collapse, that's when gold and silver and cryptos will go full on berserk, but until then, govt's and institutions will continue to fight them and attempt to regulate them. The game is fast approaching the end, but remember that the dollar will is in it's ;ast rounds and will push one final time to win the battle, but we all know how its going to end.
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To that end, please see the forecast of the dollar in the next screenshot. Notice that they are using the bollinger band, the same one I used in my Bitcoin analysis as well. Please review that post if you find this helpful or if this post is giving you something to think about. The chart below is a forecast for the dollar for end of the year in 2017.
What does this mean for gold and silver stackers like myself. Well.... Like I said in my posts about my favorite stock play SBGL, I always hedge my positions. I refuse to sell my gold stocks because I see the long term potential, but I also protect the downside. I buy the shares and 1-2 put options contracts 12 months out to protect me if the price drops so I can take those profits and buy more of the share prices at a discount.
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For those also calling for it to continue going down.... notice the screenshot below as well. HOW low can the dollar go... See chart below.
Again, if history is anything to guide us by, we can see that perhaps May-June are the last two months were the dollar will continue its downward trend before it reverses with a FUCKEN VENGEANCE!!!!
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What tis means for gold\silver stackers and gold \silver stocks... TO me it means that if you want to buy in on Gold\silver Bullion\stocks.... June is around the corner and may be your final month to load up. At the end of June or early July, I would begin to protect them with put calls or sell them and take profit.
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I am a long term gold\silver bull so I will obviously be buying puts on my gold\silver positions to protect them and well as buy a few call options for the UUP stock since history shows us that during a market crash, which is what may be here this year, we can profit from it using the dollar stock UUP.
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This is all based on what little knowledge I have everyone. None of this is intended to be investment advice, but I am showing you what I personally think will happen. WIll I sell my gold\silver during a ccrash.... FUCK NO... This is why I tell everyone to be diversified. As one asset drops to a discount price, others rise to make a profit. I talked about his in another post.....
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ALWAYS be diversified.... Thank you everyone. VOTE up if you found this post informative.
Couldn't have said it better myself. Great article and I agree with most of what you said concerning the dollar. We'll know soon enough.
Thank you. I am in gold\silver, cryptos, and dollar. I am firm believer in diversification.
I agree.
I always sound like a broken record saying this, but I have a BBC philosophy. Bullion, Bitcoin, Cash in that order.
Hey. Clever. lol although some pervs have a different view of it, but still I get your point and totally agree. Bullion, Crypto, and Cash. notice I didn't say bitcoin. I embrace several cryptos.
Lmao...never knew what you meant about 'some pervs' until I did an urban dictionary on it. I may have to change it to BCC like you suggested.
Thanks for the tip. No pun intended.
Cheers
lol cheers