Having said that I'll write a few words about some things that are quietly going on in the background. I haven't written much about recently but one of the most important drivers behind everything financial is the US Dollar. The dollar has been grinding up in a steady manner for some time now. Chart of DXY which is the chart of the US Dollar below.
As you can see it has gone up in a straight line since last July. Oil and Gold are the inverse of the dollar so as the dollar goes up Oil and Gold go down. Below are the charts of UCO and GDX. UCO is crude oil and GDX is the gold miners.
As you can see Oil and Gold dropped while the dollar went up. I have no explanation as to what is levitating the Dow and the S&P. Magic I guess. Below is the Model Portfolio which is doing very well. DUG is up 15.3% and SCO is up 17.3%. Both are short of the oil and gas market. I'm guessing that when the dollar peaks the stock market will peak and when the dollar turns down the stock market will go down as well. Oil and Gold will rise in conjunction with the decline of the dollar. If I were to make a guess I would guess the dollar will peak around 90-95 which means it doesn't have much more upside before it peaks.
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