Stocks and Precious Metals Charts - dollar strength

Stocks had a number of ways to demonstrate that they have put in a decent bottom from this recent flirtation with lower lows.

The action today was not one of them.

A gap open and sprint higher that flopped into the close reeked of artificiality.

Gold and silver did manage a bounce from the expiration lows and went out nearer to the highs of the day.

But to extend that in the face of titanic monetary events is key.

The Dollar continued its march higher, taking on the 103 handle and then some.

Or should we more correctly say that this is not Dollar strength so much as Yen and Euro weakness?

And is this dollar strength more like the receding of the ocean, prior to some greater seismic event?

The strong dollar has had its impact already, shaving several whole points off GDP in a yawning trade imbalance, fostered by a stronger dollar.

A strong dollar favors imports discourages exports and encourages hot money of finance to seek acquisitions abroad.

Save yourself from the madness of the pied pipers and their bully boys, if you will.

And you may be grateful yet, if you do so moderate your passions even to a degree, while remaining standing safely and faithfully, on higher ground.

Have a pleasant evening.

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