U.S. Dollar Index Review For Friday Aug. 23
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to long-term trends, it does not define them. The focus on short-term noise rather than trends, a source of confusion for the majority of investors, leads to the creation of bagholders at major trend transitions.
Can you see the weekend's headlines, "Trump's escalation of the trade war kills the dollar?" Dollar bulls will likely feel lonely in the coming days, but be disciplined. The headlines and idiots might not support the dollar, but the invisible sure does. The later is the only thing that matters. The Dollar's DI was 26%, even before today's selloff. If the invisible hand is buying the dip, it will rise even higher next week.
Dollar DI
The US Dollar Index's overall trend, revealed by trends of price, leverage, and time, are defined in the more
Sadly, I don't think this will hurt the dollar that much because the Yuan will slide. And no it's not because of Chinese manipulation. In fact, China has been spending billions supporting their currency. That said. It is clear both should get a deal done. The issue is, like the Cuban Missile Crisis, there needs to be a way for both sides to claim victory.
With Trump trying to prove himself as a only I win negotiator, that may be impossible, especially since he is holding only cards that will hurt America more i he plays them. Trade wars hurt both players and seldom help either side embroiled in them. The good news is ending trade wars help both players and is why the US has prospered for so many years in the global economy. Much like the stock market, everyone can win with free trade and allies just like everyone looses with protectionism and enemies.