The Dead Cat Bounce In The Dollar Is Over

It never fails.

Any time the USD begins to rally, even a little bit, the deflationists come out in full force proclaiming that it’s the start of some major bull market that will blow up the financial system.

Take this latest bounce in the USD.

Having staged one of the worst annual returns in years in 2017 (down over 14%), the USD was BEYOND oversold. Throw in the fact that traders were RECORD short the $USD and record long the Euro, and the stage was set for a USD bounce.

That bounce is now OVER. The USD has slammed into major resistance. And anyone who thinks that the US currency is going to explode higher when the ECB is about to ends its QE program needs their head examined.

As a result, we’re now up 43% this year alone.

Instead, the next move will be the USD breaking down to the mid-80s.

And this move is going to send risk assets, especially inflation/ reflation trades THROUGH THE ROOF.

This is the “White Swan” I’ve been forecasting since the end of March 2018. It will mark THE blow-off top for the markets. Yes, I mean THE top will be in for years to come.

We all know what’s coming afterwards.